OBJECTIVE To provide as a measure of welfare, travel assistance to the employees of the Company and members of their families for visiting their Home Town/any place in India.


This policy is applicable to all the permanent employees working with Asia MotorWorks Ltd, India.


The Company will provide Leave Travel Assistance (LTA) to its employee every year which is a part of the CTC.

As per Income Tax Act 1961, LTA for two journeys in a block of four years are exempted from income tax. The current block period is 2006 – 09 (1st January 2006 to 31st December 2009). LTA is exempted from Income Tax in respect of employee,

spouse, dependant children and dependant parents. EXPLANATION An employee thus can avail LTA twice in a block of 4 years once for traveling to his home town only and once for the journey to any place in India including his home town. The concession to visit any place in India is adjustable against the concession to visit home town to which an employee is eligible at the time of undertaking the journey to visit any place in India.

In case, an employee does not utilize the LTA before the end of financial year as on 31st March, the same shall be carried forward for utilization in the subsequent year.

Policy No. HRC/0009

Date : 02.05.09

where the journey is performed in a circular form touching different places. IV. like scooter charges at ends. Where journey between places connected by rail or a part thereof is performed by road by public transport or chartered bus. Policy No. the cost of propulsion being borne by the employee himself.09 . VI.• The exemption under Income Tax on expenditure under “LTA” head is available to the following extent: I. The exemption is strictly limited to expenses on air fare. Where place of destination of journey is not connected by rail or air. Air / Rail or any other mode of transport from Head Quarters to a specified place and back. the first class or deluxe class fare on Public transport system shall be allowed. Where journey is performed by Air. II. Where the journey is performed by a circuitous route.05. and bus fare only. rail fare. Where journey is performed by Rail. amount of first class air. V. portage expenses during the journey and lodging / boarding expenses will qualify for exemption. the exemption will be limited to what is admissible for the journey from the place of origin to the farthest point reached. The quantum of exemption is limited to the actual expenditure incurred on the journey. VII. HRC/0009 Date : 02.conditions fare by shortest route or amount spent which ever is less. No other expenses. by the shortest route. reimbursement will be equivalent to what would have been admissible had the journey been performed by rail by the entitled class by the shortest route. reimbursement will be on the basis of the railway fare by the entitled class by the shortest route or on the basis of actual expenses. Where such journey is performed by private car (registered in the employee’s own name). whichever is less. VIII. economy class fare by National Carrier by shortest route or amount spent which ever is less. Likewise. the exemption is limited to what is admissible by the shortest route. III.

05. • • Advance LTA can be released one month before the travel date. Where advance was sanctioned. railway ticket numbers. Air ticket. In cases where the LTA claimed by the employees is less then the eligibility then. • To apply for LTA / advance LTA. Advance LTA claim should be settled with one month time of the travel. If the same is not settled with a month then the same will be taxed in the next month Salary. If the employee surrenders train ticket/s at exit point at railway station.09 . HRC/0009 Date : 02. SUBMISSION OF CLAIMS The claims for LTA to any place in India shall be submitted within one month of the completion of the return journey and shall be supported by appropriate proof of the journeys having been performed (e. The reimbursement will be made on actual based on submission of copy of journey tickets and boarding passes for the air journeys and original tickets for train or other journeys. • In case of Advance LTA the entire amount as per the eligibility will be paid along with the salary. the employee should avail of minimum five days of Privilege Leave during the period journey/s are undertaken. then he is required to submit photocopy of the ticket along with a declaration to the effect that the original ticket has been surrendered to the Railway Authority. ELIGIBILITY FOR CLAIMING THE LTA • To become eligible for reimbursement of LTA. cash receipts etc).g. please fill up the prescribed form which is available on the Intranet. the balance should be refunded while submitting the final bill. Policy No. Exemption on travel concession will not be eligible to more than two surviving children of an individual born.IX. the same shall be refunded to the concerned employee after deducting income tax at the end of the financial year in which the LTA is claimed. failing which it will be recovered from the salary of the employee. Boarding passes. bus/taxi numbers.

09 .05. Income Tax Act will be referred and will be applicable to all the employees. HRC/0009 Date : 02. • • Employee can club the LTA if they have not availed the LTA in the previous year. employees should produce proof of Travel as per the Income Tax Act. • The company reserves to itself the right to modify.OTHER • To avail IT benefits. ******************************** Policy No. amend or cancel any of these rules without notice. Recovery of LTA will be done on a pro rata basis for those employees who resign from the services of the company and have claimed LTA in that financial year. • As far as taxability of LTA is concerned.

) Leave Balance as on 1st January LT. HRC/0009 Date : 02.APPLICATION FORM FOR LEAVE TRAVEL ASSISTANCE To.A. on PL for __________________ days from _________________Kindly sanction Leave Travel Assistance to me for the year____________________. Applicant's Signature :__________________ Name :______________________________ Date :___________ Employee Code:________________ (For HR. Sanctioned Whether LTA drawn during proceeding year Days worked during proceeding year : __________________Days : Prorata / Full : From :_____________ To ________________ : Yes / No : _____________ Days Sanctioned Rs._____________(Rupees _____________________________________________) _________________________ Sanctioned by _____________________________ Approved by Policy No. eligibility P.09 .L. HR DEPARTMENT I am proceeding.05. Dept.