Dear Friends, Please tell me method of calculating LTA.Is all the companies having different method to calculate LTA??? Please guide me!!!! Warm Regards Pooja
From India, Kanpur
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19From India, Kanpur
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Generally, LTA has been paid equal to the basic salary after the completion of one year of service against PL or EL. Suppose person A has joined the company in January 2007, and his basic is Rs. 10,000 per month. So, after one year of service, he can claim the LTA for Rs. 10,000 only by taking the leave (PL or EL). However, this can vary from one company to another, but the basic idea remains the same. Hope this information helps you.
From India, Pune
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From India, Pune
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Dear Pooja,
I agree with Abhishek. It is taken within a block of four years, and you can enjoy two journeys in that block of 4 years. As far as calculation is concerned, one month's basic salary can be considered. Also, 10% of the annual basic can be taken into consideration.
There is no specific rule that is applicable in all companies for LTA. It differs from organization to organization. Since you said you are working, you should definitely have an employee manual or at least rules governing LTA. In our organization, our LTA was for the calendar year. I joined this organization in October of 2008. Since the LTA is for the calendar year, I claimed my LTA for the year 2009 in January itself. In some organizations, it will be clearly written that the employee is eligible for LTA only after completion of one year of service.
Regards,
Vipin:icon1:
From India, New Delhi
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I agree with Abhishek. It is taken within a block of four years, and you can enjoy two journeys in that block of 4 years. As far as calculation is concerned, one month's basic salary can be considered. Also, 10% of the annual basic can be taken into consideration.
There is no specific rule that is applicable in all companies for LTA. It differs from organization to organization. Since you said you are working, you should definitely have an employee manual or at least rules governing LTA. In our organization, our LTA was for the calendar year. I joined this organization in October of 2008. Since the LTA is for the calendar year, I claimed my LTA for the year 2009 in January itself. In some organizations, it will be clearly written that the employee is eligible for LTA only after completion of one year of service.
Regards,
Vipin:icon1:
From India, New Delhi
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Hi Friends,
I am giving a hike to an employee who has completed his probationary period of 6 months and who is now confirmed. The company has decided to add LTA as a salary component. So,
1. Is there any percentage of the salary amount that we should give as LTA for an employee? If yes, then what is the statutory rule?
2. Can an employee get the LTA amount as part of the salary every month as per the statute?
Warm Regards,
Gaury
From India, Mangaluru
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I am giving a hike to an employee who has completed his probationary period of 6 months and who is now confirmed. The company has decided to add LTA as a salary component. So,
1. Is there any percentage of the salary amount that we should give as LTA for an employee? If yes, then what is the statutory rule?
2. Can an employee get the LTA amount as part of the salary every month as per the statute?
Warm Regards,
Gaury
From India, Mangaluru
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Income Tax Calculation 2009-10 - Salaries.xls