Hi friends,
I would like to know the general rules regarding payment of Leave Travel Allowance.
An employment contract I read says "LTA is only payable for the completion of each full year of employment and will not be prorated in the event you do not complete a full calendar year."
Suppose if the employee leaves the company after 11 months or after 23 months? Is he not entitled for the previous years' accrued LTA. The company also mentioned they will not pay LTA on monthly basis but will pay for 2 years at a time due to IT rules.
Is this the norm, or there's something fishy here?!
Thanks in advance for your clarifications!!!
From India, Mumbai
I would like to know the general rules regarding payment of Leave Travel Allowance.
An employment contract I read says "LTA is only payable for the completion of each full year of employment and will not be prorated in the event you do not complete a full calendar year."
Suppose if the employee leaves the company after 11 months or after 23 months? Is he not entitled for the previous years' accrued LTA. The company also mentioned they will not pay LTA on monthly basis but will pay for 2 years at a time due to IT rules.
Is this the norm, or there's something fishy here?!
Thanks in advance for your clarifications!!!
From India, Mumbai
Hi friends I would also like to about that, actually what are the procesure or rule ? Regards, Vijay Kr. Pandey
From India
From India
Hi,
LTA is calculated as per the financial year i.e from April to March in most of the organization.
LTA is paid on completing 12 months services in the organization.
LTA is one of the tax saving component paid annually.
You can exempt LTA twice in a block of 4 years, provided you attached the original copy of the journey tickets.
LTA formula is as:
LTA entitlement * number of months/12
e.g LTA entitlement is 10000/- then for the first year , DOJ is 01/03/2006
10000*12/12
If an employee leaves the organization before completing one year it is given on pro- rata bases because the LTA component is calculated in the CTC of the employee.
I hope this will help you.
Thanks,
Uttama
From India, Mumbai
2LTA is calculated as per the financial year i.e from April to March in most of the organization.
LTA is paid on completing 12 months services in the organization.
LTA is one of the tax saving component paid annually.
You can exempt LTA twice in a block of 4 years, provided you attached the original copy of the journey tickets.
LTA formula is as:
LTA entitlement * number of months/12
e.g LTA entitlement is 10000/- then for the first year , DOJ is 01/03/2006
10000*12/12
If an employee leaves the organization before completing one year it is given on pro- rata bases because the LTA component is calculated in the CTC of the employee.
I hope this will help you.
Thanks,
Uttama
From India, Mumbai
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