Policy ONE Effective January 1, 2002

No Date
Policy LEAVE TRAVEL ASSISTANCE Review January 1, 2004
On POLICY Date

1. OBJECTIVE

To provide financial assistance to employees on annual leave towards cost of

travel for self and family.

2. ELIGIBILITY

All the confirmed employees after completion of one year of continuous service
from the date of joining will be eligible to claim LTA.

3. ENTITLEMENT

The entitlement would be as per limits indicated in the terms of appointment

and as may be revised from time to time.

4. POLICY DETAILS

a) LTA covers self, spouse and dependent unmarried children and solely dependent
parents/ parents in law as declared by the employee.

b) An employee availing LTA must avail a minimum period of 5 days Privilege

Leave in accordance with the Leave Policy of the Organisation. No other form of
leave is allowable for the purpose of claiming LTA.

c) LTA reimbursement will be upto a maximum of each employee’s entitlement.

d) LTA can be claimed only once a year. If unclaimed in any particular year it can
be claimed subsequently.

e) An employee leaving the services of the Organisation is entitled to the LTA

accrued by him/her till the date of separation, even if he has spent less than a
year in the organization.

f) All payments of LTA are subject to Income Tax as per the relevant provisions of
the Income Tax Act.

5. COMPUTATION

___________ _____________ _____________ ____________ ____________

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VP-Corporate HR CFO CEO Director
VP–Finance

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a) LTA will be computed, paid and will coincide with the Compensation period.

b) LTA can be availed in any year on the basis of LTA earned in the preceding
calendar year. For new hire, LTA will be computed on prorated basis.

c) If the entitlement is revised within this time, LTA would be computed on prorated
basis, corresponding to his entitlement.

6. OPERATING PROCEDURE

a) Advance against LTA cannot exceed the quantum of entitlement. The employee
may apply for 80% of the LTA amount as a salary advance, ten working days
before proceeding on leave. However, the employee needs to furnish
satisfactory proof of travel e.g. journey tickets from one destination to another
along with the LTA bill (Format in Annexure I) within ten working days of the
employee resuming office to claim the balance 20% amount. In case the
employee fails to submit the LTA bill within ten working days of resuming office,
it will be treated as fully taxable salary.

b) For claiming an advance against LTA, the employee has to submit the photocopy
of his Leave Card, showing leave sanctioned by the Reporting Manager and he
will have to submit the LTA Advance form (Annexure II) duly filled along with the
approved leave application to the Accounts Department.

c) For the purpose of claiming LTA, necessary supporting documents (in original) as
may be required from time to time needs to be provided.

d) An employee may claim LTA on return from leave by submitting the LTA
Application Form along with a copy of the approved leave form and proof of
travel, to the Accounts Department.

e) In case the employee after availing of LTA advance does not proceed on
privilege leave as planned, the whole amount of LTA advance shall become
taxable. Administration department needs to inform Accounts department of all
sanctioned leave in excess of five days which has been cancelled by the
employee

___________ _____________ _____________ ____________ ____________

_
VP-Corporate HR CFO CEO Director
VP–Finance

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f) The Accounts Department will process the application in accordance with the
guidelines of this policy and disburse the LTA amount by cheque within seven
days of receipt of the same from the employee.

___________ _____________ _____________ ____________ ____________

_
VP-Corporate HR CFO CEO Director
VP–Finance

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