Hello
FBP Allocation Time has come. Though this mail comes very late, but due to health reasons and some research reasons, I couldn’t send it earlier.
Most of us might be in dilema about LTA which is nothing but Leave Travel Allowance.
After my research I found the following information :
LTA is a monetary benefit that you get on the expenses you incur when you travel. One can claim it twice in the block of four calendar years. This block is not calculated with the start of your employment. The government defines these blocks. Presently the block is 2002-2005. Since it is the calendar year and not the financial year, it will be from January 1, 2002 to December 31, 2005. The next block of 4 years is 2006,2007,2008 and 2009.If you fail to take the exemption in the first block of four years then you could carry forward maximum one exemption to the next block and avail three exemptions in the next block of four years. . You can claim LTA exemption for the journey made by self, wife, dependant children, dependant parents, dependant brothers and dependent sisters provided dependants are declared by you in HR records at the time of joining duty.
I had raised certain queries to the HP Payroll Helpdesk about LTA since I had filled LTA last year and had not claimed it.
Following are those for you
Question 1 : I have a doubt in the FBP allocation as the following line in your mail, I couldn t follow. "Unclaimed /Excess-claimed LTA for the period May 2005 to Jan 2006 will be carried forward to the new FBP period starting Feb 06/recovered" I had declared 16000 as LTA in the last FBP allocation.I have not claimed any LTA till now, not in any FBP cycle. I couldn t follow what you meant by the above sentence. 1. Will the LTA already cut from my salary will given back in the February Salary? 2. If the LTA is being carried forward, do I need to declare LTA in the new FBP? I would be really thankful to you.
Answer : in your last FBP period (May to April) if you have allocated Rs.16000 towards LTA, then you are eligible for an amount of Rs.12000/= on a prorata basis (ie) 16000/12*9 months. As you have not claimed the amount the amount of Rs.12000/= will be carried forward to next year so that you can claim the same during the course of this FBP period. Asssume that you have claimed your all the allocated LTA amount of Rs.16000/= then you will be recovered in your Feb month a sum of Rs.4000/= being the excess claimed LTA on a prorata basis ( FBP for 9 months). Yes you can allocate towards LTA in the new FBP period.
Question 2 : Reference to solution provided for call. kindly excuse me, I could not get one thing of the solution you have given me. As you have said, Rs 12000 will be carried forward as LTA for next year, but in case I declare 12000 as LTA for the latest FBP allocation, will 12000/12=1000 per month still be deducted from my salary or will it be assumed that the LTA per month has already been deducted(I am referrring to the 16000-4000=12000 carried forward from last FBP allocation).
Answer : Only when there is a change in the FBP period this calculation holds good. If there is no change in the FBP period then there will not be any recovery.
There are certain Rules and Regulations for claiming LTA. I could get my hands on the same from the HP Payroll. I'll try to upload them to the group files section.
Following links will also help you in knowing more about LTA.
1. FAQ on Leave Travel Allowance : http://in.rediff.com/getahead/2005/jun/06lta.htm
2. How often can you claim LTA? : http://in.rediff.com/getahead/2006/feb/07lta.htm
Courtesy : Rediff Finance
Thanks & Regards
Kanuj
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