Are Field Employees in the Gherkin Industry Eligible for LTA Benefits?

Dear all, I work in the gherkin industry as an HR professional. We have field employees as well. Can anyone let me know if these employees are eligible for LTA? We provide them with DA and reimbursement.

LTA is at the discretion of management and is availed on a yearly basis for tours, trips, or vacations. Here, alternate years are taxable. DA is fixed based on the salary category, and conveyance is fixed based on the nature of the job. If you think you want to pay for your employees' transit or travel, you can add a reimbursement part and pay the actual amount depending on the mode of transportation. What we are doing is making all employees eligible for reimbursement, which is Rs. 3 for a two-wheeler and Rs. 6 for a four-wheeler on an official trip.

Thank you.

Please share if in your salary structure the employer has mentioned LTA as a salary head.

- If yes, then the employer has to accept the LTA claims from the employee for tax benefits.
- If no, then there is no need to accept the claim.

This is my personal view based on experience; please consider the decision from the viewpoint of seniors.

Thank you,
Regards,
Ashish

There is no linkage between LTA and reimbursements. Reimbursements are the amounts that the employee spent on company work. Actually, some companies pay advances to the employees to meet the expenditure. On completion of the tour, the employee will submit the bills against the advance taken and settle the accounts.

LTA as Part of Employee Benefits

The LTA is part of employee benefits. Considering the Income Tax exemptions and to encourage employees to spend time with their family, the LTA is fixed. The amount will be paid under the Income Tax rules; hence, these are two different components.

Regards,
Kamesh

Thank you for your reply. As you asked, there is no salary head in the salary structure like LTA. We also did not mention it in the appointment letter. However, some employees are still asking for the same. As I mentioned before, we are already paying conveyance and incentives every month as reimbursement. Therefore, it is challenging to decide whether we should pay for it or not.

Thank you.

Without a salary head, how could your employer process LTA? If your employer is not providing an LTA facility, then how can employees avail themselves of the same benefits? Kindly inform your employer to adjust your salary structure and include LTA as a salary head.

Regards,
Ashish