Who doesn't want to travel when one's travel expenses are being borne by one's company? Yes, many organisations provide perks and benefits to their employees which are reimbursed in the form of remuneration and also form part of your CTC (cost to company).
Who doesn’t want to travel when one’s travel expenses are being borne by one’s company? Yes, many organisations provide perks and benefits to their employees which are reimbursed in the form of remuneration and also form part of your CTC (cost to company). The remuneration for travel expenses is known as leave travel concession (LTC) or leave travel allowance (LTA).
LTC has a cycle period of 4 years under which you can claim for two trips. If you are able to make only one trip in the LTC cycle, then the other one gets transferred to the next cycle. Currently, the cycle period is from the calendar year 2014 to the calendar year 2017.
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LTC adheres to certain rules and regulations while taking compensation towards your travel expenses from your employer.
What does LTC stand for?
LTC and LTA are interchangeably used which mean the same. It is an allowance which is included in your overall CTC and forms part of remuneration provided by an employer to an employee. Although it is a part of your overall salary, but you only get the money when you claim for it against a travel made across the country.
What are things covered under LTC?
One should understand that travel expenses do not include everything. Expenses related to travel made by rail, road, or air are covered under LTC while any expenses related to food, lodging, taxi, auto or various other expenses you make while traveling are not covered.
How many members are covered?
Under LTC your whole family is covered where family means your spouse, children (two maximum). If your parents, brothers, and sisters are dependent on you, then in such a case they are also covered under LTC rules. However, the dependency factor in the case of your children is not applicable.
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How and when to claim?
Simply, you can claim for LTC from your company. The claim should be a valid trip made by you between the leaves which you have applied in your company. The claim should be supported by a proof of travel. LTC is offered on the employee’s journey. This means if you have bought your ticket with your family from Delhi to Mumbai and you don’t travel up to Mumbai, then in such a case you cannot claim LTC.
One must clarify the LTC reimbursement through one’s HR department or the accounts department for more clarity as per the company’s norms.