LTA POLICY

(LEAVE TRAVEL ALLOWANCE)

Guideline: As per the Government guidelines

Contents

1. Objective………………………………………………………………………………………………………….3

2. Applicability……………………………………………………………………………………………………...3

3. Guideline………………………………………………………………………………………………………….3

4. Completion………………………………………………………………………………………………………5

Guideline: As per the Government guidelines

1. Objective
Leave Travel Allowance (LTA) exemption is under section 10(5), payable to staff members as an
allowance during their course of employment with the company.

2. Applicability
This policy is applicable for staff members on rolls of Pine Labs Pvt. Ltd.

3. Guideline
1. The staff member can avail exemption under LTA only in respect of two journeys performed
by him/ her in a block of four calendar year(s). Only one journey will be considered in a calendar
year.

2. For Air Travel – Original air tickets along with original boarding Pass should be submitted
while claiming for LTA. In case of Internet booking – the relevant e-ticket printout can be
submitted with the claim. Eligibility would be limited to Economy Airfare of Airline tickets or the
Proofs submitted. Travel certificate from the Airlines may be submitted, in case of unavailability
of the original boarding pass.

3. For Travel by Train / Bus– Original or Online tickets should be submitted. Eligibility would be
limited to A/C first class train or the proofs submitted. Leave details/ application will be required
for processing the claim.

4. For Travel by Cab – Original bill should be submitted mentioning the place(s) of travel,
distance covered in Kilometers (Trip Sheet) and number of person(s) travelled etc. The bill
should be in the name of the staff member only. Toll gate receipts are also required to be
submitted. In case the same is unavailable, then the Lodge/Hotel Room bills should be
submitted to substantiate the proof of travel. The amount of exemption however will be
restricted to First A.C. fare by rail and as per the shortest route.

5. Tax benefit is applicable on/ for actual fare only. Hotel/Lodge bill, food, sightseeing, local
conveyance (taxi fare for airport/railway station) etc. is not permissible to be claimed and the
travel should be within the country to gain claim eligibility. Travel to foreign country is not
eligible for tax benefit.

6. Exemption is available for farthest place by shortest route when the circular journey is
performed for example travel from Bangalore to Mumbai and Mumbai to Delhi. Hence the
circular journey in such a case will be considered i.e. the travel from Bangalore to Delhi will be
considered.

Guideline: As per the Government guidelines

7. Exemption is available only for Self (i.e. staff member), spouse, children, parents and
dependent brother and sister. Exemption is not available for In-laws or any other member of the
staff member as mentioned in point number ‘8’.

8.Meaning of “family” – For the purpose of section 10(5) “family” in relation to an individual
means—
A. the spouse and children of the individual;
B. the parents, brothers and sisters of the individual who are wholly or mainly dependent on the
staff member.

9. Travel by own vehicle is not eligible as an exemption.

10. If the relatives of the staff member including wife and other family member(s) travel,
without the staff member accompanying them, such a case will not be considered.

11. Leave detail/ application is mandatory to claim Leave Travel Allowance i.e. LTA. The
submission of approved leave and e-mail copy along with Form 12 BB is required to be
submitted. The bills in original should match with the journey/ travel date.

Exemption is subject to the following conditions:

Different Situations Amount of exemption

Where the journey is performed by Air.
Where journey is performed by Rail.
Where the places of origin of journey and destination
are connected by rail and journey, is performed by
any other mode of transport
Where the places of origin of journey and destination
(or part thereof) are not connected by rail:
Where a recognized public transport exists
Where no recognized public transport systems exist
Amount of economy class air fare of the National
Carrier by the shortest route or the amount
spent, whichever is less
Amount of air-conditioned first class rail fare by
the shortest or amount spent, whichever is less
Amount of air-conditioned first class rail fare by
the shortest or amount spent, whichever is less
-
First class or deluxe class fare by the shortest
route or amount spent, whichever is less
Air-conditioned first class rail fare by the shortest
route (as if journey had been performed by rail)
or the amount actually spent, whichever is less.

12.“Carry-over” concession – If an assesses has not availed travel concession or assistance

during any of the specified four-year block periods on one of the two permitted occasions (or on
both occasions), exemption can be claimed in the first calendar year of the next block (but in
respect of only one journey). This is known as “carry over concession”. In such case, the
exemption so availed will not be counted for the purposes of claiming the future exemptions
allowable in respect of 2 journeys in the subsequent block

Guideline: As per the Government guidelines

4. Completion

All bills for availing LTA should be submitted along with the Form 12 BB and Salary based
reimbursement Form in the salary Reimbursement drop box. The amount on verification would
be disbursed to the staff member as per the re-imbursement cycle payout.

Guideline: As per the Government guidelines