Leave Travel Assistance Policy

OBJECTIVE:
With a view to enable employees to take time off from their work and to enjoy a holiday with their
family the !ompany has provided a poli!y for reimb"rsin# the travel e$penses in!"rred by the
employee alon# with his%her family members&
'CO(E:
This poli!y is appli!able to eli#ible employees of the !ompany&
)*TE O+ CO,,E-CE,E-T:
This poli!y will !ome into effe!t from .st 'eptember /001&
E2I3IBI2IT4:
This poli!y is appli!able to permanent employees of (2 and above !adre who have opted for 2T*
as part of their salary and their families&
The word 5family6 shall in!l"de 7i8 spo"se and !hildren9 7ii8 dependent parents and 7iii8 brothers
and sisters who are wholly dependent on the employee&
9 E$emption from ta$ is available to only two !hildren of an individ"al after .st O!tober :;&
<owever this restri!tion does not apply in respe!t of !hildren born before .st O!tober :; and
also in respe!t of m"ltiple births after first !hild&
Employees !an avail the option of !ombinin# 2T* for two years in a blo!k of fo"r years 7for e#=
/00/=01 /00>=/00: et!&8 and take them to#ether& In !ase the employee avails 2T* every year
the 2T* wo"ld be s"bje!ted to ta$ as per In!ome Ta$ r"les and re#"lations&
POLICY


2T* is appli!able when the employee is pro!eedin# on leave to any pla!e in India&
The 2T* shall be the amo"nt a!t"ally in!"rred on "ndertakin# s"!h travel s"bje!t to the followin#
!onditions namely:
Where the jo"rney is performed by air an amo"nt not e$!eedin# the air e!onomy fare of
the national !arrier by the shortest ro"te to the pla!e of destination&
Where pla!es of ori#in of jo"rney and destination are !onne!ted by rail and the jo"rney is
performed by any mode of transport other than by air an amo"nt not e$!eedin# the air=
!onditioned first !lass rail fare by the shortest ro"te to the pla!e of destination&
Where the pla!es of ori#in of jo"rney and destination or part thereof are not !onne!ted by
rail the amo"nt e$emption for shall be:
Where a re!o#ni?ed p"bli! transport system e$ists an amo"nt not e$!eedin# the .st
!lass or del"$e !lass fare as the !ase may be on s"!h transport by the shortest ro"te to
the pla!e of destination&
Where no re!o#ni?ed p"bli! transport system e$ists an amo"nt e@"ivalent to the air=
!onditioned first !lass fare for the distan!e of the jo"rney by the shortest ro"te as if the
jo"rney has been performed by rail&
PROCEDURE FOR AVAILING LTA
*n employee availin# 2T* shall s"bmit his%her re@"est for leave to the san!tionin# a"thority at
least .1 days in advan!e& 'an!tion of leave sho"ld not be ass"med for 2T*& 2T* will be payable
only when an employee a!t"ally pro!eeds on leave for a minim"m period of 1 workin# days
san!tioned in advan!e as per the leave r"les in for!e& When the 2T* leave !ommen!es at the end
of the year and ends in the -ew 4ear the 2T* will be treated as it is availed for the year in whi!h
the leave !ommen!ed& The employee shall s"bmit the !laim form alon# with s"pportin# ti!kets
within one week on res"min# d"ty from 2T*& In !ase an employee fails to s"bmit the de!laration
of travel as re@"ired the 2T* !laim shall be liable to in!ome ta$ whi!h will be ded"!ted from
salary and responsibility of satisfyin# Company%IT a"thorities rest with the employee !on!erned
re#ardin# e$emption of the same for I T p"rposes&
In !ase an employee is not able to avail leave after #ettin# san!tion for 2T* d"e to work
e$i#en!ies his%her eli#ible family members will be allowed to take the advanta#e of the poli!y&
<owever the 2T* amo"nt re!eived by the employee will be liable to in!ome ta$ and the same will
be ded"!ted from salary at so"r!e&
2T* payment will be !onsidered as per prevalent IT re#"lations s"bje!t to employee f"rnishin#
ne!essary information%proof&
AB*-TB, O+ BE-E+IT

*s per terms of appointment letter&

C2*I, +OC,*T

* simple re@"est letter to <C%+inan!e alon# with s"pportin# do!"ments for reimb"rsement&

The comany reserves the ri!ht to amen"#$ith"ra$ the olicy at anytime $itho%t
assi!nin! any reason $hatsoever& The %tility an" interretation o' the olicy $ill (e at the
sole "iscretion o' the )ana!ement
Tax deduction allowed on LTA
Tax deduction allowed on LTA
Leave travel assistance (LTA) is generally paid as a part of the remuneration of
employees. With some proper planning, an employee can save some tax through this
mode.
The LTA amount is received from the employer towards a journey within ndia. LTA is
eligi!le for deduction under the ncome Tax Act su!ject to compliance with specified
conditions. Section 10 of the Income Tax Act specifies that in the case of an individual,
the amount of any travel concession or assistance received !y him is exempt.
t should !e received from his employer for himself and his family. "e should !e
proceeding on leave to travel to any place in ndia. The exemption is availa!le to an
individual for two journeys in a !loc# of four calendar years commencing from the
calendar year $%&'. The current !loc# is calendar years ((anuary to )ecem!er) *++' to
*++%.
Where such travel concession or assistance is not availed of !y the individual during any
such !loc# of four calendar years, it may !e carried forward. ,uch amount of travel
concession or assistance can !e availed of !y the individual during the first calendar year
of the immediately succeeding !loc# of four calendar years, and is eligi!le for exemption.
Any fixed sum paid !y the employer to the employee !y way of LTA on the !asis of a
self-declaration !y the employee is not exempt from tax. n order to claim the exemption,
he must produce original proofs for expenses, i.e., the tic#ets, !ills etc.
The tax !enefit is for actual fare only. "otel, food, sight seeing, local conveyance etc are
not allowed. .or the purposes of this exemption, /family/ means the spouse and children
of the individual, and parents, !rothers and sisters who are mainly dependent on the
individual. n case the journey is !y air, an amount not exceeding the economy fare of the
national carrier !y the shortest route to the place of destination is ta#en. n case the place
of origin of journey and destination are connected !y rail, and the journey is !y any other
mode of transport other than !y air, an amount not exceeding the air conditioned first
class rail fare !y the shortest route to the place of destination is ta#en. Where the place of
origin of journey and destination are not connected !y rail, the amount eligi!le for
exemption is - where a recognised pu!lic transport system exists, an amount not
exceeding the first class or deluxe class fare, on such transport, !y the shortest route to
the destination, and where no recognised pu!lic transport system exists, an amount
e0uivalent to the air conditioned first class rail fare, for the distance of the journey, !y the
shortest route. The amount exempt will not exceed the amount of expenses actually
incurred for the travel. The exemption is availa!le for a maximum of two children of an
individual. The journey should !e in ndia only. The exemption is availa!le for the
farthest place !y shortest route when a circular journey is underta#en.
The amount exempted under ,ection $+ will !e the amount actually incurred on the
travel.