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 Defining Exemption on Leave Travel Allowance (LTA)

Purpose

This process describes how to define the wage types for Exemption on Leave Travel Allowance (LTA) and assign characteristics to it.

Prerequisites

You must maintain the details of the travel tickets, submitted as proof by the employee, in the Exemptions infotype (0582) LTA subtype.

Process Flow

  1. You must define the taxcode for LTA reimbursement. To do so,go to the IMGunder Start of the navigation path Payroll India Next navigation step Tax Next navigation step Tax Liability on Reimbursements, Allowances and Perks Next navigation step Define tax Codes. End of the navigation path The tax code used forLTA reimbursement is SLTA .

  2. You must configure the wage type for the Tax Type and the Tax Code. To do so,go tothe IMG under Start of the navigation path Payroll India Next navigation step Tax Next navigation step Tax Liability on Reimbursements, Allowances and Perks Next navigation step Assign Tax Code limits to Wagetypes End of the navigation path .

  3. You must configure the Attendence/Absence Type, Number of days of Leave and the Leave Counting Method for the LTA wage type.To do so,go tothe IMG under Start of the navigation path Payroll India Next navigation step LeaveTravel Next navigation step Maintain Minimum Eligibility Period for Leave Travel Allowance End of the navigation path .

    Note Note

    For further details on setting up the wage type, see INVAL .

    For details on how to set up each IMG activity, refer to the IMG documentation.

    End of the note.