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 IMG under Payroll India ® Tax ® Tax Liability on Reimbursements, Allowances and Perks ®Define tax Codes. The tax code used for LTA reimbursement is SLTA.

       2.      You must configure the wage type for the Tax Type and the Tax Code. To do so, go to the IMG under Payroll India ® Tax ® Tax Liability on Reimbursements, Allowances and Perks ®Assign Tax Code limits to Wagetypes.

       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 to the IMG under Payroll India ® Leave Travel ® Maintain Minimum Eligibility Period for Leave Travel Allowance.

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.