Leave Travel Allowance on pro data basis in full and final settlement not paid .
1 year ago
After leaving the company, Company refused to pay pro rated LTA as per CTC in full and final settlement. i would like to know any law for pro-rated Leave Travel Allowance shall be paid. company reply is' as per company practice it is not paid. LTA shown in CTC amount shown with * mark as per company policy. ' i would like to any wages act for pro-rated Leave Travel Allowance.
A.Dear client,
LTA can be claimed for travel fare or tickets within India only, expenses incurred for accommodation, or any other fee will not be eligible for exemption. An employee can produce his/her travel-related bills for the journey by air, train, bus, or any other mode of transport and save on taxable income.
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.
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.
LTA can be claimed for travel fare or tickets within India only, expenses incurred for accommodation, or any other fee will not be eligible for exemption. An employee can produce his/her travel-related bills for the journey by air, train, bus, or any other mode of transport and save on taxable income.
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.
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.
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