Hi, I am working with MNC; in which LTA policy is slightly different from the Government Rules.
Here we can not claim LTA for dependant parents as well as we can not claim for the 1st class rail fare.
These benefits are there in Government Rule but Employer policy is different than this.
Is there any rule, in which Employer needs to follow government policies? Kindly Advice.
Regards,
From India
Here we can not claim LTA for dependant parents as well as we can not claim for the 1st class rail fare.
These benefits are there in Government Rule but Employer policy is different than this.
Is there any rule, in which Employer needs to follow government policies? Kindly Advice.
Regards,
From India
LTA being an additional benefit not forming part of salary or remuneration for work performed, the employer has all freedom to frame his own policy in this regard. Therefore, if your establishment has a policy to pay only employee's fare and that too second class fare, then it has to be followed. There are private companies which offer Leave Travel Allowances better than as provided by government. There are companies which pay LTA yearly whereas many companies including government pay it only once in two years or twice in a block of four years following the Income Tax Act.
Similar is the case with medical expenses reimbursements; some companies allow bills of dependents whereas some others reimburse only bills of employees only.
Regards,
Madhu.T.K
From India, Kannur
4250Similar is the case with medical expenses reimbursements; some companies allow bills of dependents whereas some others reimburse only bills of employees only.
Regards,
Madhu.T.K
From India, Kannur
LTA as a benefit is made part of the CTC and aligned with I T Rules to save income tax of the individual employee. Just as in case of HRA, it is advisable to align LTA rules with that of the Income Tax in order to offer better returns to the employee as a compensation strategy. If this is not followed, recommendation from HR may be sent to the headquarters with all facts and figures in favor of the argument to win the case. For details you may contact me at 
or 9967002955
With warm regards
Perumal
From India, New Delhi
With warm regards
Perumal
From India, New Delhi
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LTA Policy.doc