Lta claim

Tax queries 900 views 4 replies

Sourav

AVP

25 Points Posted on 13 May 2012

My wife's orgainization is not allowing LTA claim. Here is the case:

My wife booked air tickets for Goa (where her mother stays) for herself, me and our daughter on 25th February, 2012. The travel date was 22nd to 29th April, 2012. She has also applied for leave for the same period. We completed the travel and she submitted her LTA claim on 30th April, 2012. The company came back saying that as the booking was done in Feb, 2012 and therfore the money was paid in FY 2011-2012 therefore the claim can only be made for the period FY 2011-2012, though the travel took place in FY 2012-2013. She has joined the company in Jan, 2011 and has not applied for LTA in the current block of 4 years before this.

So my question is, should the company allow for LTA in FY 2012-2013 as submitted by my wife or is the company right by disallowing it. If she is right what course should she take, is there any law, circular, notes which states that claim can be made only after travel takes place?

Regards,

Sourav

Replies (4)

V K Bajaj

Accountant

1540 Points Posted on 13 May 2012

Mr Sorav,

Actually LTA is nothing but reimbursement of expenses done on travelling and the proceudre is governed by Law as well as Rules of Company or Employer. As expenses were done in Feb 2012 while booking air tickets so expenses relates to 2011-12 and not 2012-13. Your company has reason to reject it.

But going the accounts concept way, as still balance sheet must be under compliation, so Comapny can reflect or book it as expenses done in Feb 2012 but payable to your wife - which would be paid in April or May 2012. Your wife's boss should be liberal to adopt this route.

Sourav

AVP

25 Points Posted on 13 May 2012

Thanks for your reply, however I have a doubt. I believe there are 2 conditions to claim LTA benefit. One is the employee must have actually traveled and secondly the employee should have taken leave for the travel period. Both these conditions would not have been satisfied if I had tried to claim LTA in 2011-2012. Any thoughts? Regards, Sourav

raghav

MBA-(HONS)FINANCIAL SERVICES

25 Points Posted on 16 May 2012

Dear Sourav,

This is not important that your wife should have to actually travel in order to avail lta , she can give a mere undertaking of travel to the company and remain absent for the time period stated in the undertaking, the company is liable to pay the LTA to your wife.