I had just resigned from an MNC after working for more than 2 years. At the time of the final settlement, I have not received the LTA amount, which is about Rs. 60,000.00. According to the HR team, I will not get the same as I had not applied for the LTA claim.
Could anybody please help me know if the same is in the LTA act?
From India, Mumbai
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Could anybody please help me know if the same is in the LTA act?
From India, Mumbai
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Generally, LTA is a part of an employee's CTC. If claimed as an expense for travel of self and family, the amount reimbursed is tax-exempt. If an employee does not claim LTA, the amount due to the employee should be paid as taxable income. Being part of the CTC, denying payment of LTA reflects poor HR practice.
Vasant Nair
From India, Mumbai
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92Vasant Nair
From India, Mumbai
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Dear Prempant,
Leave Travel Allowance (LTA) rules and policies are framed by companies and paid to employees, generally forming part of the annual CTC.
Generally, LTA for a year is payable in the succeeding year. For claiming LTA, the employee has to undertake travel with his family members (no specific guideline is available, in my opinion) and should provide proof of having spent the eligible amount for the purpose of travel (boarding and lodging not applicable). Normally, companies pay the eligible LTA amount, and upon the employee's return from LTA leave, supporting documents must be submitted. If the employee does not undertake any travel, then the LTA amount is paid and taxed at the hands of the employee.
In the event of cessation from employment, the company usually pays the eligible LTA amount till the date of the employee's departure, and the amount is taxed as per IT rules.
However, if the employee fails to give the notice period and quits employment without serving the notice period or without paying the notice pay, companies adjust this amount towards the dues from the employee. You have not made any mention of the notice period or notice pay, so I am unable to comment on this point.
If you have served the notice period and the company still refuses to pay the LTA amount, then obviously it is very poor HR practice. In my opinion, you can write to them pointing out the amount if it was indicated in your offer of appointment. However, as mentioned by a member, there are no specific rules related to LTA.
Regards,
M.V. KANNAN
From India, Madras
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Leave Travel Allowance (LTA) rules and policies are framed by companies and paid to employees, generally forming part of the annual CTC.
Generally, LTA for a year is payable in the succeeding year. For claiming LTA, the employee has to undertake travel with his family members (no specific guideline is available, in my opinion) and should provide proof of having spent the eligible amount for the purpose of travel (boarding and lodging not applicable). Normally, companies pay the eligible LTA amount, and upon the employee's return from LTA leave, supporting documents must be submitted. If the employee does not undertake any travel, then the LTA amount is paid and taxed at the hands of the employee.
In the event of cessation from employment, the company usually pays the eligible LTA amount till the date of the employee's departure, and the amount is taxed as per IT rules.
However, if the employee fails to give the notice period and quits employment without serving the notice period or without paying the notice pay, companies adjust this amount towards the dues from the employee. You have not made any mention of the notice period or notice pay, so I am unable to comment on this point.
If you have served the notice period and the company still refuses to pay the LTA amount, then obviously it is very poor HR practice. In my opinion, you can write to them pointing out the amount if it was indicated in your offer of appointment. However, as mentioned by a member, there are no specific rules related to LTA.
Regards,
M.V. KANNAN
From India, Madras
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Full form of LTA is Leave Travel Allowance and amount is paid by company for travel by you and your family.
From India, Kanpur
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From India, Kanpur
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Dear Mr. Prempant,
Whatever Mr. Vasant Nair and Mr. M.V. Kannan have stated above is absolutely correct. You may write to the HR Head of your previous company (copying the CEO of that company) to request immediate payment of the LTA. Allow 15 days for a response. If you do not receive the amount within this time, escalate the matter by directly contacting the CEO and again wait for 15 days. Should the amount still remain unpaid, seek the assistance of a Labor Lawyer. Through the Labor Lawyer, address the CEO directly. This course of action should ensure that you receive the outstanding amount.
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
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Whatever Mr. Vasant Nair and Mr. M.V. Kannan have stated above is absolutely correct. You may write to the HR Head of your previous company (copying the CEO of that company) to request immediate payment of the LTA. Allow 15 days for a response. If you do not receive the amount within this time, escalate the matter by directly contacting the CEO and again wait for 15 days. Should the amount still remain unpaid, seek the assistance of a Labor Lawyer. Through the Labor Lawyer, address the CEO directly. This course of action should ensure that you receive the outstanding amount.
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
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Employee Handbook 2009 FINAL.doc