Hi Friends,
Hope you are all fine.
Friends, I have one query.
Can we add LTA in our monthly payroll, or is it only payable on an annual basis?
Waiting for your inputs on this.
Thanks,
From India, Mumbai
Acknowledge(0)
Amend(0)
4Hope you are all fine.
Friends, I have one query.
Can we add LTA in our monthly payroll, or is it only payable on an annual basis?
Waiting for your inputs on this.
Thanks,
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Friend,
In my organization, we used to pay LTA once a year, but starting from this financial year, we are paying LTA through monthly salary. The issue with LTA depends entirely on whether the LTA amount falls within the bracket of income tax. In our organization, it is considered as payment falling within the bracket, so we have begun paying it through monthly salary in order to increase the net pay.
I hope this addresses your query.
Regards,
Shailendra
From India, Pune
Acknowledge(0)Amend(0)
In my organization, we used to pay LTA once a year, but starting from this financial year, we are paying LTA through monthly salary. The issue with LTA depends entirely on whether the LTA amount falls within the bracket of income tax. In our organization, it is considered as payment falling within the bracket, so we have begun paying it through monthly salary in order to increase the net pay.
I hope this addresses your query.
Regards,
Shailendra
From India, Pune
Acknowledge(0)Amend(0)
Dear Soma,
LTA is to be paid as laid down in the Statutes like the Factories Act if covered. Now, if the income is taxable, the LTA can be claimed twice in a block of four years, and on submission of documents, the amount reimbursed is non-taxable up to the limit fixed. Any other payment under LTA is the same as any other allowance and is fully taxable.
So, monthly payment of LTA is not advisable for salaried persons falling within the tax bracket.
Regards,
SC
From India, Thane
Acknowledge(0)Amend(0)
LTA is to be paid as laid down in the Statutes like the Factories Act if covered. Now, if the income is taxable, the LTA can be claimed twice in a block of four years, and on submission of documents, the amount reimbursed is non-taxable up to the limit fixed. Any other payment under LTA is the same as any other allowance and is fully taxable.
So, monthly payment of LTA is not advisable for salaried persons falling within the tax bracket.
Regards,
SC
From India, Thane
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf