Understanding LTA in Salary: When Is It Applicable and How to Calculate It?

Respected Seniors, I want to know about LTA (Leave Travel Allowance). When is it applicable? Is it compulsory to show LTA in salary calculation? If yes, please provide an example in an Excel sheet calculation using the amount of Rs. 22,500. If possible, create a salary structure based on this amount.

Thank you.

Usually, LTA is eligible for an employee after completing the stipulated probation period. It is not obligatory for the LTA to be included in the salary structure. Basically, those whose salary falls in the taxable bracket can use the facility of LTA.

Eligibility and Usage of LTA

LTA can be used only after the completion of 1 year, as the ELs will be credited during the year, and the leaves for LTA are 6 days (minimum). If an employee has resigned and is eligible for LTA, the due amount is given in their F&F.

Regards