I had just resigned from a MNC after working for more than 2 Years. At the time of final settlement I have not received LTA amount which is about Rs.60000.00. As per the HR team I will not get the same as I had not applied for LTA claim.
Any body pls help me to know about if the same is in LTA act?
From India, Mumbai
Any body pls help me to know about if the same is in LTA act?
From India, Mumbai
Generally LTA is part of an employee's CTC. If claimed as an expense for travel of self and family, the amount so reimbursed is Tax exempt.
If an employee does not claim LTA, the amount due to an employee should be paid to him/her as taxable income.
Being part of the CTC, denying payment of LTA reflects poor HR practice.
Vasant Nair
From India, Mumbai
90If an employee does not claim LTA, the amount due to an employee should be paid to him/her as taxable income.
Being part of the CTC, denying payment of LTA reflects poor HR practice.
Vasant Nair
From India, Mumbai
Dear Prempant,
Leave Traval Allowance (LTA) rules and policies are framed by companies and paid to employees and generally forms part of 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 for having spent the eligible amount for the purpose of travel (boarding and lodging not applicable). Normally companies pay the LTA amount eligible and upon the employees return from LTA leave the supporting documents must be submitted. If the employee does not undertake any travel then the LTA amount is paid and is taxed at the hands of the employee.
In the event of cessation from employment then the company usually pays the LTA amount eligible till the date of his leaving 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 about the notice period or notice pay, so I an unable to comment on this point.
If you have served the notice period and still the company is refusing to pay the LTA amount, then obviously it is very poor HR practice. In my opinion you can write to them pointing out to the amount if it was indicated in your offer of appointment, but as said by a member there are no specific rules relating to LTA.
Regards
M.V.KANNAN
From India, Madras
Leave Traval Allowance (LTA) rules and policies are framed by companies and paid to employees and generally forms part of 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 for having spent the eligible amount for the purpose of travel (boarding and lodging not applicable). Normally companies pay the LTA amount eligible and upon the employees return from LTA leave the supporting documents must be submitted. If the employee does not undertake any travel then the LTA amount is paid and is taxed at the hands of the employee.
In the event of cessation from employment then the company usually pays the LTA amount eligible till the date of his leaving 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 about the notice period or notice pay, so I an unable to comment on this point.
If you have served the notice period and still the company is refusing to pay the LTA amount, then obviously it is very poor HR practice. In my opinion you can write to them pointing out to the amount if it was indicated in your offer of appointment, but as said by a member there are no specific rules relating to LTA.
Regards
M.V.KANNAN
From India, Madras
Full form of LTA is Leave Travel Allowance and amount is paid by company for travel by you and your family.
From India, Kanpur
From India, Kanpur
Dear Mr.Prempant,
Whatever Mr.Vasant Nair & Mr.M.V.Kannan given above is absolutely correct.
You may write to the HR Head of your previous company (marking cc to the CEO of that company) asking him to pay the LTA immediately. Wait for 15 days time. If you dont get the amount, then write to CEO direct and wait for 15 days time. And still you dont receive the amount, you seek the help of a Labour Lawyer. Through the Labour Lawyer you write to that CEO direct. Finally you definately get the amount.
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
Whatever Mr.Vasant Nair & Mr.M.V.Kannan given above is absolutely correct.
You may write to the HR Head of your previous company (marking cc to the CEO of that company) asking him to pay the LTA immediately. Wait for 15 days time. If you dont get the amount, then write to CEO direct and wait for 15 days time. And still you dont receive the amount, you seek the help of a Labour Lawyer. Through the Labour Lawyer you write to that CEO direct. Finally you definately get the amount.
K. Gopalakrishnan
Sriperumbudur
From India, Bangalore
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