Hi All

I need your help. I'm in a HR Outsourcing BPO. I want to know something related to Salary Components. In Salary ,there are many components, like Basic salary, LTA , HRA , MEDICAL etc. So the Questions, which my subordinate asked to me why these components like LTA, Conveyance Allowances are added in Salary. Because LTA is a component paid to provide for any expenditure by an associates towards any travel in respect to him/herself and dependents thereof. and we are getting pick and drop facility also.So why this component is added in Salary?

Please help and reply as soon as possible

Hi,

The LTA component as rightly mentioned is added to get tax banefit.
LTA till Rs. 25,000 is exempted from tax and Rs. 800 as conveyance is exempted.

Although it cannot be a part of monthly salary.

Generally the companies provide LTA as a benefit to an employee who have successfully completed 12 months of service in the company.

If you have any other query, do let us know.

Cheers
Radha