Transport Allowances getting deducted if anybody apply for leaves

pewdiepie-2
Dear All

I need a small clarification, In our company, Travelling Allowance is a part of Monthly Gross, but in case if anybody takes leave, Company pay all the components but only transport allowance is deducted for the leave taken,
If Transport Allowance is part of our CTC, whether the company can deduct this amount.
This practice is followed for a long time under the instruction of our MD and nobody has objected.

I need to know whether this practice is right, if not how should I explain the Management and try to rectify it,
Madhu.T.K
Travelling allowance/ conveyance allowance/ transport allowance is an allowance which is available to an employee to reach the office and back home. Hence if it is not paid for the days the employee remained on leave, whether paid leave or unpaid leave, there is no illegality. But very often this allowance is a lump sum amount per month and as such it will be payable for paid leave days also. Still you cannot take it as a right. CTC has no legal relevance. It shall include all costs of keeping an employee in service. Therefore, it shall be an amount that the company will cost if you are present on all the days.
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