Hi friends, I would like to know the general rules regarding payment of Leave Travel Allowance. An employment contract I read says, "LTA is only payable for the completion of each full year of employment and will not be prorated in the event you do not complete a full calendar year."
Suppose if the employee leaves the company after 11 months or after 23 months? Is he not entitled to the previous years' accrued LTA? The company also mentioned they will not pay LTA on a monthly basis but will pay for 2 years at a time due to IT rules. Is this the norm, or there's something fishy here?!
Thanks in advance for your clarifications!!!
From India, Mumbai
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Suppose if the employee leaves the company after 11 months or after 23 months? Is he not entitled to the previous years' accrued LTA? The company also mentioned they will not pay LTA on a monthly basis but will pay for 2 years at a time due to IT rules. Is this the norm, or there's something fishy here?!
Thanks in advance for your clarifications!!!
From India, Mumbai
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Hi friends I would also like to about that, actually what are the procesure or rule ? Regards, Vijay Kr. Pandey
From India
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From India
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Hi,
LTA is calculated as per the financial year, i.e., from April to March in most organizations. LTA is paid upon completing 12 months of service in the organization. LTA is one of the tax-saving components paid annually. You can exempt LTA twice in a block of 4 years, provided you attach the original copy of the journey tickets. The LTA formula is as follows: LTA entitlement * number of months / 12. For example, if the LTA entitlement is 10000/-, then for the first year, the Date of Joining (DOJ) is 01/03/2006:
10000 * 12 / 12
If an employee leaves the organization before completing one year, LTA is given on a pro-rata basis because the LTA component is calculated in the CTC of the employee.
I hope this information is helpful.
Thanks,
Uttama
From India, Mumbai
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2LTA is calculated as per the financial year, i.e., from April to March in most organizations. LTA is paid upon completing 12 months of service in the organization. LTA is one of the tax-saving components paid annually. You can exempt LTA twice in a block of 4 years, provided you attach the original copy of the journey tickets. The LTA formula is as follows: LTA entitlement * number of months / 12. For example, if the LTA entitlement is 10000/-, then for the first year, the Date of Joining (DOJ) is 01/03/2006:
10000 * 12 / 12
If an employee leaves the organization before completing one year, LTA is given on a pro-rata basis because the LTA component is calculated in the CTC of the employee.
I hope this information is helpful.
Thanks,
Uttama
From India, Mumbai
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