Dear Sir/ Mam, My salary is not taxable ( 2,40,000/- P.A but still Employer has added LTA component in my CTC. My per annum LTA component is Rs 6000/-
Now as i know that one can claim LTA twice in Block of 4 years. DOJ - 15.07.2016.
My question is if I don't claim LTA not even once in the coming 4 years, then am i eligible to get complete 24000/- added to my salary ??
Secondly, if an employee claims LTA in 2019, then is he eligible to claim 6000X 3 = 18000 ( of all 3 years) or he can only claim 6000/- of that particular year only ??
Please help me to clarify this doubt.
Regards
Supriya
From India, New Delhi
2Now as i know that one can claim LTA twice in Block of 4 years. DOJ - 15.07.2016.
My question is if I don't claim LTA not even once in the coming 4 years, then am i eligible to get complete 24000/- added to my salary ??
Secondly, if an employee claims LTA in 2019, then is he eligible to claim 6000X 3 = 18000 ( of all 3 years) or he can only claim 6000/- of that particular year only ??
Please help me to clarify this doubt.
Regards
Supriya
From India, New Delhi
Hi its as per your lta query.i think this vary company to company for under standing please refer to hr policy of your company.
From India, undefined
From India, undefined
Supriya - I agree with Yogesh that LTA rules will be as per your company HR policy. However as per Income come tax rules you can claim LTA twice in a block of 4 years. As per your LTA eligibility, you should be able to claim Rs.12,000/- as LTA in every 2 years. I do not think you can accumulate for 4 years and claim at once, then it could be taxable or you get exemption of 12,000/- as LTA and balance 12,000/- taxable. However this will depend on your company's HR policy. Best of luck.
From India, Mumbai
From India, Mumbai
CTC is cost to company every year.
So you should be getting that money paid to you as it's considered a cost to the company.
The taxability of it is immaterial to you as you are below taxable limit.
So you should claim the amount each year.
However, many companies use CTC as a tool to fool the employee into thinking their earning is higher than what they are actually being paid. So your company may have actually designed this to deny you the money. So actually you need to ask your hr
From India, Mumbai
So you should be getting that money paid to you as it's considered a cost to the company.
The taxability of it is immaterial to you as you are below taxable limit.
So you should claim the amount each year.
However, many companies use CTC as a tool to fool the employee into thinking their earning is higher than what they are actually being paid. So your company may have actually designed this to deny you the money. So actually you need to ask your hr
From India, Mumbai
Ms. Supriya
Irrespective of IT coverage designing of components for salary is Company's policy. If you want to accumulate it for two/four years check what is stated in LTA policy of the company or else avail then and there.
V.Murali
From India, Madipakkam
Irrespective of IT coverage designing of components for salary is Company's policy. If you want to accumulate it for two/four years check what is stated in LTA policy of the company or else avail then and there.
V.Murali
From India, Madipakkam
hi.. I am working as a HR for the startup company. How to under take PF and ESI for the employees?
From India, Bengaluru
From India, Bengaluru
Dear supriya,
LTA is not statutory component hence
Employer is not bound to consist the LTA
Component in salary structure prodominantly its aims to provide
The tax benefit to employee. Further
LTA component and payment thereof is
Subjected to your service agreement. However No exemption under income tax
can be granted unless the salary structure
Consist the LTA component. Only two
journey within the india is permited in
one block. If employee has not avail any
Journey in existing block then only one
journey can be carry forward to next block
which is mandatory to avail in the first year
Of next block. As per CBDT circular 8/2013
Dated 10/10/2013 the exemption is limited
to actual expenses incurred on air fare,
Train fare, bus fare, No other expenses
Like local conveyance, ticket booking
expenses etc. is admissible for deduction
Under section 10(5) of income tax act. 1961
Thanks & Regards
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
LTA is not statutory component hence
Employer is not bound to consist the LTA
Component in salary structure prodominantly its aims to provide
The tax benefit to employee. Further
LTA component and payment thereof is
Subjected to your service agreement. However No exemption under income tax
can be granted unless the salary structure
Consist the LTA component. Only two
journey within the india is permited in
one block. If employee has not avail any
Journey in existing block then only one
journey can be carry forward to next block
which is mandatory to avail in the first year
Of next block. As per CBDT circular 8/2013
Dated 10/10/2013 the exemption is limited
to actual expenses incurred on air fare,
Train fare, bus fare, No other expenses
Like local conveyance, ticket booking
expenses etc. is admissible for deduction
Under section 10(5) of income tax act. 1961
Thanks & Regards
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
Dear Supriya,
I have gone through the article today itself. Though the experienced members have explained the matter in detail (regarding company policy towards pymt of LTA, IT Rule for taking the LTA).
I would just like to add the current block period is edning in 2017. The Income Tax rebate agst LTA for block period 2014-2017 can be availed by taking LTA upto Dec. 2017. As stated your income is not taxable, so I will advice to take LTA for the year 2016 and 2017 together. This is bcoz, even if you don’t submit the detail (LTA Declaration) of actual exp. of your travel, there will be no Tax deduction. Suppose next year you get a good opportunity and supposed to shift immediately into the new job, than your existing employer will pay all accumulated LTA amount with F&F. Since you will have little (almost nil) time to avail LTA period (in general for taking LTA, employee have to take continuous PL for 3-5 days, in my company it is 5 days). In that case the total amount of LTA will be count as taxable income with your new employer.
By taking LTA with low IT slab will avoid preparing unnecessary documents (Taxi bills, distance calcualtion, travel declaration detail etc.).
I have given the suggestion keeping in view the practical problems in LTA declatation (to make it Tax Free).
Hope now all your points will be cleared. Fellow members can put more inputs on the matter.
From India, Delhi
I have gone through the article today itself. Though the experienced members have explained the matter in detail (regarding company policy towards pymt of LTA, IT Rule for taking the LTA).
I would just like to add the current block period is edning in 2017. The Income Tax rebate agst LTA for block period 2014-2017 can be availed by taking LTA upto Dec. 2017. As stated your income is not taxable, so I will advice to take LTA for the year 2016 and 2017 together. This is bcoz, even if you don’t submit the detail (LTA Declaration) of actual exp. of your travel, there will be no Tax deduction. Suppose next year you get a good opportunity and supposed to shift immediately into the new job, than your existing employer will pay all accumulated LTA amount with F&F. Since you will have little (almost nil) time to avail LTA period (in general for taking LTA, employee have to take continuous PL for 3-5 days, in my company it is 5 days). In that case the total amount of LTA will be count as taxable income with your new employer.
By taking LTA with low IT slab will avoid preparing unnecessary documents (Taxi bills, distance calcualtion, travel declaration detail etc.).
I have given the suggestion keeping in view the practical problems in LTA declatation (to make it Tax Free).
Hope now all your points will be cleared. Fellow members can put more inputs on the matter.
From India, Delhi
First and foremost, let us know one fact. How Your LTA facility is made out, whether it's paid in cash either in a block of two years or four years or every year to home town, irrespective of whether you under take the journey or not OR Expenses are reimbursed ?. Whereas in respect of the other category- travel expenses (only to & fro fare as per eligibility), excluding accommodation, local travel, food exp. etc. are reimbursed subject to eligibility for the trips undertaken either to home town or any where in India/abroad. Diff. types of facilities are in vogue with estts. Some estts. don't bother much about the genuineness whether the trip is undertaken or not, reimburse the eligible money on mere certification with a view to ensure availability of the employees on duty instead of increase the work pressure by granting LT leave. Some employers compulsorily/encourage employees to be sent on LT to enable themselves refresh and enjoy days away from work pressure. So the taxability of LTA should be examined based on HR policy wrt LTA as allowance paid in cash or Expenses reimbursed on actual claim subject to limits. Also Read for further info.on this here -->
https://www.citehr.com/161811-lta-exemption-tax.html
https://www.citehr.com/1425-differen...leave-pg2.html
From India, Bangalore
https://www.citehr.com/161811-lta-exemption-tax.html
https://www.citehr.com/1425-differen...leave-pg2.html
From India, Bangalore
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