Hi, I am working with an MNC in which the LTA policy is slightly different from the government rules. Here we cannot claim LTA for dependent parents, nor can we claim for first-class rail fare. These benefits are available in the government rules, but the employer's policy differs from this. Is there any rule that requires the employer to follow government policies? Kindly advise.
Regards,
From India
Acknowledge(0)
Amend(0)
Regards,
From India
Acknowledge(0)Amend(0)
LTA being an additional benefit not forming part of salary or remuneration for work performed, the employer has the freedom to frame their own policy in this regard. Therefore, if your establishment has a policy to pay only employees' fare and that too second-class fare, then it has to be followed.
There are private companies that offer Leave Travel Allowances better than those provided by the government. Some companies pay LTA yearly, whereas many companies, including the government, pay it only once in two years or twice in a block of four years following the Income Tax Act.
A similar situation exists with medical expenses reimbursements; some companies allow bills of dependents, whereas others reimburse only employees' bills.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4470There are private companies that offer Leave Travel Allowances better than those provided by the government. Some companies pay LTA yearly, whereas many companies, including the government, pay it only once in two years or twice in a block of four years following the Income Tax Act.
A similar situation exists with medical expenses reimbursements; some companies allow bills of dependents, whereas others reimburse only employees' bills.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
LTA as a benefit is made part of the CTC and aligned with IT Rules to save income tax for the individual employee. Just as in the 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, a 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 mannatham.perumal@gmail.com or 9967002955.
With warm regards,
Perumal
From India, New Delhi
Acknowledge(0)Amend(0)
For details, you may contact me at mannatham.perumal@gmail.com or 9967002955.
With warm regards,
Perumal
From India, New Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.