LEAVE TRAVEL ALLOWANCE POLICY

Purpose : To clearly outline the eligibility and process for

claiming the Leave Travel Allowance
for JKT employees.

Dated : 17th May 2016

Effective Date : 1st April 2016

Document No. : HR/Policy 22.0

Scope : The policy will specify expenses covered under the LTA and
defines the eligibility of
dependents.

Applicability

The scheme covers all the permanent employees on the rolls of the Company, who
have LTA as a part of their compensation structure. It also extends to the
employees spouse, children and dependent parents.

Policy Details

o Employees can avail the LTA Component twice in a block period of four years.

o The employees LTA entitlement is as mentioned in the individual employees

compensation plan.

o In order to claim LTA, employee should remain on leave for a minimum period
of 5 days which may include weekends, Company holidays, RH, Annual
Leaves and should have actually traveled during the claimed holidays.

o Any unclaimed LTA after completion of block period will be paid off through
payroll in January and will be treated as taxable.

o LTA can be claimed only for domestic travel (within India) and not for
international travel.

o LTA amount (taxable or nontaxable) will only be routed through monthly

payroll.
 o LTA shall not be applicable for the period if employee is deputed onsite on
long term assignment and on Leave without Pay days.

LTA Cycle

o The LTA cycle at all the levels will be followed from January to December.

o An employee is entitled to claim his/her first LTA on completion of one year of

service with the organization and second LTA will be aligned with the
specified above cycle.

o Employee can submit the LTA travel proof post completion of the LTA cycle for
travel done during the LTA cycle.

o In case the claim amount is less than the entitlement amount the remaining
amount will be paid as taxable. For example: If the employee is entitled for
INR 20,000 as LTA but he / she claims for INR 10,000 as expenses then the
balance INR 10,000 will be treated as taxable.

Proof of Travel

o Employees, who wish to avail the LTA facility with income tax benefit on the
same, will have to produce the proof of travel along with their LTA claim form
(attached herewith) to HR department.

o The proof of travel must be one or more of the following:-

o Only Air Tickets, Train tickets and Bus tickets along with the boarding pass (in
case of air travel) will be accepted as proof of travel.

o In case of origin of journey and destination or part thereof are not connected
by rail / Air network then the employee can claim the first class or deluxe
class bus fare by the shortest route. Other modes of commutation such as
taxi bills etc. and hotel bills for staying will not be accepted as proof of
claiming the LTA and No Tax rebate will be applicable.
Limits & Exemptions as per Income Tax Laws

o Where the journey is performed by rail an amount not exceeding the first
class air-conditioned rail fare by the shortest route to the destination shall be
exempted.

o Where the journey is performed by air an amount not exceeding the air
economy fare of the national carrier by the shortest route to the place of
destination shall be exempted.

o Where places of origin of journey and destination are not connected by rail,
and the journey is performed by any other mode of transport, the amount
eligible for exemption shall be :

Where a recognized public transport system exists, an amount not

exceeding the first class or deluxe class fare or economy class airfare,
as the case may be, on such transport by the shortest route to the
place of destination; and

Where no recognized public transport system exists, an amount

equivalent to the first class air-conditioned rail fare or economy class
airfare, for the distance of the journey by the shortest route, as if the
journey had been performed by rail.

Reimbursement

o All the claims of LTA will be reimbursed only on performance of the travel and
submission of evidence of the travel (i.e. travel tickets). Where the employee
fails to produce the evidence of travel, the same will be treated as taxable
LTA and paid to the employee post deduction of taxes at the end of the
financial year.

o LTA claim at any point of time can be claimed only max upto the accumulated
LTA amount for the employee as on that month.

Carry Forward of LTA

o Employees can carry forward the LTA to the next financial year. However, the
carry forward is applicable up to one year only.
 o Any reimbursement not claimed in the current financial year / carried forward
year, will be paid at the end of such year as taxable LTA and will be subject to
income-tax as per the relevant provisions of the Income Tax Act, 1961.

LTA Encashment while in Service

o Employees who do not wish to avail the tax benefit on their LTA, have the
option of encashing their LTA by submitting self-declaration form (attached
herewith) to HR Department, which will be paid to them through monthly
payroll as taxable.

o In case of LTA encashment (Taxable), no leave is required.

LTA Encashment on Resignation

o An employee who has resigned from the services of the organization the
balance LTA if any will be included in their full and final settlement by default
as taxable.

o All balance LTA will be paid automatically as taxable till the date of departure
in case employee is deputed on onsite on long term assignment.

Taxability

o If the employee takes the LTA amount through the salary, the tax liability will
be borne by the employee.

o Tax rebate is applicable twice in block of four years. The first block period will
start from 1st April 2016 and will end on 31st December, 2017. Thereafter
company will follow the provisions of the Income Tax Act, 1961 and the next
block period will start from 01-Jan-2018 to 31-Dec-2021.
 LEAVE TRAVEL CONCESSION CLAIM FORM
DATE :

1 Employee Code

2 Employee Name
3 Date of Joining
4 Claim Type Taxabl Non .
taxable
e with bills
5 Leave days From . To
6 Claim Amount

Details of journey (s) performed by employee and the members of his/her

family.

Relati Mode
S
on of
R Ag Travel
Name with From To Travel Fair Paid Remark
N e Date
emplo &
o.
yee Class

Total
.
Notes:
1-Original Fare tickets to be enclosed.
2-Boarding passes to be enclosed if journey mode is air travel.
3- No bills are required if Taxable LTA is claimed.
4- Family members should be dependent on employee except Spouse and
children.