What is LTA in salary?

[krunaldalvi]

Hi,

I have joined a small Loyalty Management firm recently and just today received my appointment letter along with salary break down. On the day of interview when i was selected i was been told that i will be working as a management trainee for initially 3 months with 2.5 lakh ctc which later on will be 3 lakh ctc with a Deputy Relationship Manager position.

Today i received my salary breakdown which under salary payable has following components:
1: Basic pay: 12352
2: HRA: 4941
3: PF company: 1482
4: LTA: 1029
5: Bonus: 1029
totals to Rs. 20,833
whereas under deductions components are:
1: PF: 1029
2: Prof. Tax: 200
Net salary: Rs. 15,611

My question is since LTA is under salary payable shouldn't it be paid? but i dont think it has been included in my Net salary.

According to my primary search over internet i found out that LTA is Leave Travel Allowance (allowance for travelling during leave/holiday) which has to be claimed against appropriate evidence and can only be claimed twice in 4 years. But since i am from mumbai itself i dont travel for holidays/leave.
so will i receive it or not?

also i am confused since it is included in CTC (cost to company) which ideally should be paid to me so would it be paid even if i dont claim for it?

Please give your comments on it.

Thanks and Regards,
Tushar Dalvi.
:SugarwareZ-190:

 

[PR_mp]

Hey Tushar,

here is the detail information about LTA !

LTA means Leave Travel Allowance. It’s an Annual Component and you don’t receive it monthly. There is a LTA rule or act which says you can claim it twice in a span of four years but it would be non taxable for that you need to take paid leave say minimum 5 days or so (Depending on your company policy). The Travel should be within India and not outside India. If he wants to claim yearly then tax would be deducted on the same (if salary is taxable) then only and wherever you are based that is not important the person should be an Indian citizen for claiming taxable LTA . Travel bills are required and only government or public transport(Train, air or bus) no private transport. The person will get LTA of two years if he submits the travelling proof that amount would be nontaxable and for other two years it would be taxable if he does not travel. The main criteria is that in travel he should be there if only the family goes then the person cannot claim LTA. So if the person does not travel then he will get the amount only tax would get deducted if salary is taxable

 

[joshi.murgha]

Wow its really great information on LTA in salary. Thanks for sharing

 

[Business-education]

This is good piece of new,helpful to know.
here i send some more tips about how to calculate LTA

LTA stands for Leave Travel Allowance....
LTA can be claimed by any employee upto 2 trips in the block of 4 years....
The current block of 4 years is jan 2010 to dec 2013...means an employee can claim upto 2 trips in the block of these 4 yrs. but only once in a year.
Now what if an employee takes more than 2 trips....??
Then he can claim any 2 trips of maximum amount...
The LTA bill should be submitted to company for a claim and it is tax exempted, and if it is not claimed it will be added in your salary and will be taxable.....
Hope u got some idea about LTA....