` 

Hindalco Leave Travel Allowance (LTA)

Policy

Aditya Birla Group
Effective 1st July 2017
















Hindalco Leave Travel Allowance Policy 
 
 

Contents
 

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

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

3.  Key Points:………………………………………………………………………………………………………………………………….3 

4. Rules for Tax exemption:.………………………………………………………………………………………………………..3 

5. Treatment for Tansfer, Separation, Retirement and Death:………………………….…………………..5 

6.  Frequently Asked Questions (FAQ):.………………………………………………………………………………………5 

7. LTA Travel Expenses Claim:…………………………………………………………………………………….………7

 
 

   

Strictly for internal circulation 2


Hindalco Leave Travel Allowance Policy 
 

1. Objective

The objective of this document is to articulate process of payment of Leave Travel Allowance
(hereinafter called the “LTA”) as per entitlements given in employees Total Cost to Company.

2. Applicability:

All the employees of Hindalco Industries Ltd including its subsidiaries Utkal Alumina and
HAAL, working in management (Job Band 11 & above) and LMS cadre (Band 12‐14) are
eligible for LTA, subject to the same being part of their individual Total Cost to Company.

LTA is payable @ one month’s Basic salary per annum subject to the limits, if any, mentioned
in employee’s individual letters.

3. Key Points:

3.1 Eligibility: LTA eligibilities shall be calculated on calendar year basis. For employees
joining during the year, LTA shall be paid on pro‐rata basis.

3.2 Claim: LTA can be claimed any time during the year by the employees confirmed in
service. LTA can be claimed either as “Taxable” or as “Exempted” (subject to the provisions
of Income Tax Act). The employee has to indicate in his LTA Claim Form as to whether he is
claiming LTA as taxable or as exempted. The status of LTA claimed as “Taxable” cannot be
changed to “Exempted” even if employee is able to produce supporting proofs later.
Exempted LTA can be claimed only for a single journey (to and fro) from the origin to the
destination through shortest route for self and the family members. All the unclaimed LTA
as on 15‐Dec shall be paid in December salary post TDS.

3.3 Leave Required: Employee must be on leave (PL/CL) at least for one day to claim LTA
exemption. The quantum of leave to be taken however is subject to the respective Leave
policies. As per current leave policy, a minimum of 4 Privilege must be taken in one go. LTA
cannot be claimed when the employee is on sick leave.

3.4 LTA Accumulation: The LTA can be accumulated for up to 2 years. Employee shall have
to submit a request for accumulation before 30‐November of the year.


Strictly for internal circulation 3

Hindalco Leave Travel Allowance Policy 
 

4. Rules for Income Tax Exemption:
LTA is exempted from tax twice in a block of four years as per current Income Tax rules,
such as 2010‐13, 2014‐17, 2018‐21 and so on.

4.1 Exemption is based on actual expenditure ‐ The quantum of exemption is
limited to the lower of actual expenses incurred on the journey and the LTA entitlement
given in employee’s Total Cost to Company.

4.2 Domestic travel only – LTA exemption can only be claimed for domestic travel.
International travel is not covered for LTA exemption.

4.3 Employee must be travelling ‐ To claim the exemption the employee must be
undertaking the journey. If his/her family members are travelling separately without
the employee, the exemption cannot be claimed for such family members.

4.4 If journey is performed by Air, exemption for the economy class fare (subject
to the fare of the national carrier (Air India) for the same route) can be claimed.

4.5 If journey is performed by Rail, Air‐Conditioned First class fare by shortest
route or the amount spent whichever is less can be claimed.

4.6 If rail service is not available but a recognized public transport system does
exist – the exemption will be limited to the first class or deluxe class fare on such
transport by the shortest route.

4.7 Where rail service is not available and recognized public transport system
also does not exist – the exemption will be for an amount equivalent to the air‐
conditioned first class rail fare for the distance by the shortest route as if the journey
had been performed by rail. In such a case, all the supporting travel bills / receipts have
to be submitted.

4.8 Place of origin and destination place of journey connected by rail but
journey performed by other mode of transport – A.C. first class rail fare by shortest
route or amount spent whichever is less.

4.9 Place of origin & destination not connected by rail (partly/fully) but
connected by other recognized Public transport system – First class or deluxe class
fare by shortest route or amount spent whichever is less.

Strictly for internal circulation 4

Hindalco Leave Travel Allowance Policy 
 
4.10 Place of origin & destination not connected by rail (partly/fully) and not
connected by other recognized Public transport system also – AC first class rail
fare by shortest route (as the journey had been performed by rail) or the amount
actually spent, whichever is less.

4.11 Documents required to claim LTA exemption – LTA Claim form and travel
tickets. Invoices issued by travel agents are not admissible as proof of travel, except
for travel done by hired cars/taxies.


5. Treatment on Separation, Transfer, Retirement and
Death:
5.1 For Separation, Retirement or Death
LTA shall be calculated on a pro‐rata basis and paid /or recovered as the case may be
along with the full and final settlement.

5.2 For Transfer

When an employee is transferred out of Hindalco, the entitlement for the year will be
prorated and paid along with the last month salary.



6. Frequently Asked Questions (FAQ):

What exactly does Leave Travel Allowance cover?
Leave Travel Allowance covers only the travel expenses incurred during the travel.
Hotel accommodation, food, etc. cannot be claimed for exemption.

How many times can I claim tax exemption for Leave Travel Allowance?
You can claim tax exemption twice in a block of four years. If you do not utilize the LTA
exemption once or on both occasions during the block of four calendar years, you can
carry forward maximum one exemption to the next block of four years. This exemption
shall be in addition to the exemption that will be available in respect of two journeys
during the succeeding block.

What is the maximum limit on LTA exemption?
LTA exemption is limited to the lower of travel expenditure and LTA entitlement given
in the individual Total Cost to Company.

Strictly for internal circulation 5

Hindalco Leave Travel Allowance Policy 
 
Can an employee and his/her spouse both claim LTA exemption from their
respective employers?
Yes, both the spouses can claim the exemption on LTA from their respective employers.
However, both of them cannot claim exemption for the same journey.

Can LTA be claimed if the employee does not accompany his/her family members
on the journey?
No, LTA cannot be claimed for the family if the employee is not travelling with them

Whom does the LTA exemption can cover?
LTA exemption covers the employee and his/her family. Family includes spouse and
children, whether dependent or not, and parents, brothers, sisters who are fully or
mainly dependent on the employee. LTA tax break is not available for more than 2
children if born after 01.10.1998. This restriction does not apply to children born before
01.10.1998.

Can I claim Advance LTA prior to proceeding on a journey?
There is no provision of paying any advance LTA

I claimed my LTA in the month of April however my LTA entitlement got revised
with effect from 1st July after Annual Compensation Review. Can I make a claim of
differential amount again in the month of August?

No, you can claim LTA only once in a year. The differential will be paid to you
automatically in the month of December post TDS.

I have claimed my LTA in the month of February as Taxable however I went on a
journey in the month of September and I have now got all the supporting bills. Can
I submit them now to change my LTA from “Taxable” to “Exempted”?

No, LTA claimed as “Taxable” cannot be made “Exempted” thereafter.





‐‐‐End of document‐‐‐




Strictly for internal circulation 6

Hindalco Leave Travel Allowance Policy 
 
HINDALCO INDUSTRIES LIMITED
LEAVE TRAVEL EXPENSES CLAIM FORM 

Poornata ID     Business Unit    
 
Employee Name       Nature of Claim  Taxable            Exempted 

Date of Journey    From : ______________________________  To : ____________________________________ 

Journey Detail :    Origin :______________________________  Destination:_____________________________ 

Details of people traveled: 
Relation  Relation
Sr. 
Sr. No  Name  with the  Age  Name  with the  Age 
No 
employee  employee 

1.    Self 4.

2.    5.

3.    6.

Detail of Travel: 
Mode : Air / Train / 
Sr. No  Date (dd‐mm‐yyyy)  Journey Details: (From/To )  Amount 
Bus / Other 

1.         

2.               

3.               

4.   

5.   

Total Claimed Amount
 
I hereby declare that the above information furnished by me is correct and the Company can rely on it for the purpose 
of deduction of Income tax from the salary income. I also understand that if the furnished information is found incorrect 
at any time, my claim may be deemed inadmissible and I indemnify the Company in respect of all cost, charges and 
consequences thereof.   The Company is also free to take further action as it may deem fit.  

I also herewith declare that I have / have not claimed LTA on more than two occasions (including this claim) during the 
block of four calendar years commencing on 01‐01‐_________ and ending on 31‐12‐_________ 
 
 
 

Date  : _____/_____/___________       Signature of Employee__________________________
       
Strictly for internal circulation 7