Can We add LTA in CTC as deduction?
As we are one of C to H IT company, our margins are very less, and to get more margins clients are asking to show more deductions in CTC, Can someone suggest what are all the deductions we can show in CTC.
From India, Bengaluru
As we are one of C to H IT company, our margins are very less, and to get more margins clients are asking to show more deductions in CTC, Can someone suggest what are all the deductions we can show in CTC.
From India, Bengaluru
How is LTA a deduction? Rather it is an addition to salary offered. I think you have no basic idea about salary, remuneration or compensation? If the objective is CTC? How can the clients insist to show more deductions in CTC? If your ideology is show as much allowances as possible in the compensation as Cost To Company, you should be betraying your employees. If an employee accepts the offer believing that the allowances shown in the CTC are amounts due to him, and later on you say that these are payable based on some conditions, he will get frustrated. That frustration will be reflected in his deliverables. Ultimately he will resign and go. This will only add cost to the company. At the same time, if you offer a remuneration which will be actually paid in real terms, there will be transparency, and that will make the employees confident. Obviously, the latter group of employees will be far far better than the former. Therefore, asl the clients what they expect from CTC?
From India, Kannur
4246From India, Kannur
You can add LTA in CTC as component but can't do the deduction.
You may be xyz co, it doesn't matters a lot to the laws because can't do unethical practice. You can rise your profit margins by slashing the overhead expenses and other nonproductive expenditure.
From India, Mumbai
You may be xyz co, it doesn't matters a lot to the laws because can't do unethical practice. You can rise your profit margins by slashing the overhead expenses and other nonproductive expenditure.
From India, Mumbai
LTA = Leave Travel Allowance. It is a benefit to the employees payable in cash or as reimbursement if the scheme permits (as in the case of govt. & quasi govt.estts.) first the employees avail by spending and claim as reimbursement, once in a block of year(s), for self & family. In this nothing there as deduction like EPF.
And enhancing profit & profitability there can be many factors which the corporate management has to engage seriously. I don't think there is any room for your clients insist any aspect in this connection. May be casually, on personal discussion some suggestions they would have made which have to be considered in proper perspective.
From India, Bangalore
And enhancing profit & profitability there can be many factors which the corporate management has to engage seriously. I don't think there is any room for your clients insist any aspect in this connection. May be casually, on personal discussion some suggestions they would have made which have to be considered in proper perspective.
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ADD.jpg
LTA (REDIFF).doc