Overview
The Optima platform enables organisations to create digital LTA program for employees and also to manage employees' LTA claims incurred during domestic travels. You need to create a new Zeta HR account to gain access to various Optima corporate benefit programs, for example, meal vouchers, medical reimbursements, fuel reimbursements, gift cards, LTA and communication reimbursement.
LTA Card Compliance
To know about the Government Compliance on Leave & Travel reimbursements, see LTA Card Compliance.
Before You Begin
- Create a Zeta Business Account
To create a new business account, see Setting up a Corporate Account. - Know Your Payroll Administering Procedures
For detailed information on the Standard Operating Procedures for administering an allowance and a reimbursement program, refer Program Administration Guidelines.
Keynote: Pre-requisite for Setting Up LTA Program
Please agree to the following before setting up your LTA Program:
Claim Creation by Corporate Employees
Employees will upload claims by filling in the details of all individual trips of a journey. Employees will also have to declare that all the trips claimed are part of a single journey.
Claim Processing by Zeta
Zeta will not allow partial approval of LTA claims. If any information (dates, proofs, documents, etc) is deemed incorrect/incomplete by Zeta, then we will reject the claim altogether. The user will have to upload the claim again with corrected details.
Proof of Leave
Proof of Leave has to be mandatorily submitted by the employees with every claim. All dates of travel of all trips of the claim must fall within the leave period, else the claim will be rejected by Zeta.
Valid documents for proof of leave are:
Image of approved leave application
Screenshot of approved leave application email
Proof of Travel
The valid documents required for proof of travel are:
- When mode of journey is flight:
- Tickets with booking date clearly visible
- Boarding pass or travel certificate issued by the airline
- When mode of journey is train, bus or cab:
- Tickets or receipts issued by the travel agency
What is an LTA Block?
LTA block years are blocks of 4 calendar years created by Income Tax Department.
| Block Number | Period |
|---|---|
| 1 | 1986-89 |
| 2 | 1990-93 |
| 3 | 1994-97 |
| 4 | 1998-01 |
| 5 | 2002-05 |
| 6 | 2006-09 |
| 7 | 2010-13 |
| 8 | 2014-17 |
| 9 | 2018-21 |
Corporate must allot the limits for every employee to Zeta, through the LTA order file at the start of LTA program administration. Zeta will ensure that only the specified number of claims are approved for the employee in the LTA block.
The LTA order file will have two additional columns against every employee:
Number of claims allowed for current LTA block.
Number of claims carried forward from previous LTA block.
Note Claims carried forward from previous LTA block, is subject to the condition that this claim is used in the first year of the subsequent LTA block.
Limits on Number of LTA Claims per Employee
The Income Tax regulation puts a cap on the number of times an employee can claim for LTA in an LTA block of four calendar years. The suggested limits are:
Maximum two claims by the employee in the current LTA block of four calendar years.
Maximum one claim carried forward by the employee from the previous LTA block, subject to the condition that this claim is used in the first year of the subsequent LTA block.
Working of Limits
Updating both values is possible with every new order. Values will be overwritten whenever new values are entered by the HR (all updates will be per employee). The new value will be honored irrespective of old values.
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If the old value was 2 and the new value is 3, then:
If the old value was 2 and the new value is 1, then:
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“Suggested” Tax Exemption Calculation
Along with claim approved amount, Zeta also provides a suggested exempt amount for every LTA claim approved. The calculation for the suggested exempt is done as follows:
Every trip of the claim will be considered independently for calculation.
Air India fares will be considered for all flight fare calculations. Actuals will be considered, if Air India fares are not available.
One A/C train fare will be considered for all train journeys and private cab journeys.
State bus fares will be considered for bus journeys. Actuals will be considered, if state bus fares are not available.
Using the Optima Dashboard
Optima provides a simple web browser-based desktop interface that helps organizations to access the LTA module and then oversee the whole leave reimbursement program digitally. Corporate HRs can create and manage LTA transfer orders as per company policy with provision of adding or using custom modules, for example, to restrict number of travel in a block year. You are also allowed to revoke unused LTA credit and close an employee account. The Zeta dashboard enables you to perform following tasks:
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Ensure to add sufficient funds via NEFT or cheque transfer and add these details in Optima dashboard to successfully process the employee LTA program. See Manage Funds for more details. |
Custom Configuration
You may wish to have some custom needs that are not part of built-in product features. Optima platform is flexible and designed to suit your custom needs such adding details on number of travels that can be claimed per year, LTA limit per annum and so on. Email support (support@zeta.in) or call support (022 - 6112 3989) for any custom requirement.
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