Policy Name : LTA Policy Version 5.

Effective Date : April 01, 2019

Modification Change History

Sr No. Description of Change Date of Release Version No
1.0 New Document Release Apr 01 ,2014 1.0
2.0 Document Modification June 14,2015 2.0
3.0 Document Modification Apr 03,2017 3.0
4.0 Document Modification Oct 01,2018 4.0
5.0 Document Modification as per grade Apr 01, 2019 5.0
and CTC structure

Table of Content

1.0 Purpose
2.0 Eligibility
3.0 Definitions
4.0 General Guidelines and LTA Policy at Icreon
5.0 Explanation
6.0 Submission of Claims
1.0 Purpose

Leave travel Allowance is a tax saving tool available for the associates on Grade I4 and above. It is
provided as a measure of welfare, travel assistance to the Icreon members and of their family
members for visiting their Home Town or any place in India only.

2.0 Eligibility

This policy is applicable to all the Full time associates working with Icreon at grade I4 and above.

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3.0 Definitions:

Family: It includes spouse, children as well as dependent - parents, brothers and sisters. In respect
of children born on or after 1.10.98, the exemption will be restricted only to two surviving children
unless the birth after one child has resulted in multiple births (like twins or triplets).

Block Year: LTA is not related to when you started your employment. The government fixes blocks
of years. They are calendar years (January 1 to December 31).The current block is - 2018-21 i.e 1st
January-2018 to 31st December-2021.

During this time period (of 4 yrs block), a person is entitled to two LTA exemptions only.

4.0 General Guidelines and LTA Policy at Icreon

 As per Income Tax Act 1961, LTA for two journeys in a block of four years are exempted
from income tax. LTA is exempted from Income Tax in respect of associate and his
dependent family members at the time of joining.

LTA being a part of Flexible Compensation Plan is part of CTC. It can only be defined for not
less or more than one month of your basic salary.

 LTA is a part of CTC by default as per their grade eligibility and will be paid in the monthly
salary only. In case the associate wants to avail tax benefit, associate would be required to
submit the bills meeting all the conditions as mentioned in this policy.

 Associate should be on 3 days of casual leave for the duration he/she is willing to take LTA
exemption.

5.0 Explanation

The associate can avail LTA tax exemption twice in a block of 4 years only for traveling to any place
in India including his home town.

The exemption under Income Tax on expenditure under “LTA” head is available to the following
extent:

I. Air / Rail or any other mode of transport from a place of origin to a specified place and back.

This document is the exclusive property of Icreon. Copying, distribution, electronic mail is strictlyprohibited.
 II. Where journey is performed by Air, amount of economy class fare by National Carrier by
shortest route or amount spent whichever is less.

III. Where journey is performed by Rail, amount of first class air- conditions fare by shortest
route or amount spent whichever is less.

IV. Where place of destination of journey is not connected by rail or air, the first class or deluxe
class fare on Public transport system shall be allowed.

V. The quantum of exemption is limited to the actual expenditure incurred on the journey.

VI. Where the journey is performed by a circuitous route, the exemption is limited to what is
admissible by the shortest route. Likewise, where the journey is performed in a circular
form touching different places, the exemption will be limited to what is admissible for the
journey from the place of origin to the farthest point reached, by the shortest route.

For instance: If you are travelling from Chennai to Bangalore, the amount you can claim is
for a train/bus/flight that goes directly from Chennai to Bangalore. If you go from Chennai ->
Hyderabad -> Bangalore for some strange reason and try to claim the two-trip expenses, it
will not be approved. You have to either submit expenses for the Chennai -> Hyderabad ->
Chennai trip or book tickets in a direct trip from Chennai to Bangalore

VII. Where journey between places connected by rail or a part thereof is performed by road by
public transport or chartered bus, 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, whichever is less.
Where such journey is performed by private car (registered in the associate’s own name),
the cost of propulsion being borne by the associate himself, 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.

VIII. The exemption is strictly limited to expenses on air fare, rail fare, and bus fare only. No
other expenses, like scooter charges at ends, portage expenses during the journey and
lodging / boarding expenses will qualify for exemption.

IX. The entire cost of the holiday is not covered. LTA exemption can be claimed only for travel if
your holiday package includes hotel and sight -seeing (which it normally does) – you won’t
be able to take an exemption for that.

X. If family travels without Icreon’s associate, no LTA can be claimed.

This document is the exclusive property of Icreon. Copying, distribution, electronic mail is strictlyprohibited.
6.0 Submission of Exemption Claims

Eligible associates can submit the self-attested travel bills along with signed declaration
form for claiming exemption. In case of air travel self-attested travel bills, boarding passes
and the declaration form need to be submitted to HR complying to all the necessary
conditions as mentioned in the policy above as and when the travel is done.

This document is the exclusive property of Icreon. Copying, distribution, electronic mail is strictlyprohibited.