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Dear sir , My LTA is a part of CTC which we could earlier claim as a lump sum any time subject to tax rules .My entitlement is Rs 25000 pa . Earler situation earlier if we travelled in say june of any calendar year we could still claim the entire amount of Rs 25000/- i.e Amount accrued from jan to june + amount to be accrued from July to dec of that calendar year . Current situation
In other words my monthly LTA entitlement is Rs 25000/12 = Rs 2083/- approx . and so Rs 2083 x 5 = Rs10415 /- . Pls advise if the company can do this . Rajeev saini asked May 21 '12 at 22:28 by Rajeev saini 1●1●1●1 |
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Most of the companies don't pay full LTA amount in advance, however the eligible full amount becomes non-taxable and company keep paying the remaining amount per month. Say, you claimed for LTA in Aug 2012 for Rs 25000. Now till Aug end, you are entitled to get LTA for 5 months as per CTC. So company pays Rs 10415 in Aug salary. And remaining claim amount should be paid every month Rs 2083 as non-taxable. Above process is correct as some employees may leave in middle of year and company don't want to pay amount upfront in advance. Please ask your employer to clarify if they also are following above process. answered May 28 '12 at 23:25 by Pankaj Batra 5.2k●3●20 |