LTA Liabiltiy

Hanuma (13 Points)

10 May 2007  
hi!

iam working in thye Internal Audit Department of a pharmacuitical's company having 150 crores tirnover.
my query is the company pays LTA to its field staff if any person avails minimum 5 days leave.

LTA will be paid on claim basis only.
now the field staff are claiming 2004,2005 calender year's LTA placing an application for as per sec10(5) in the present calendar year2006.
can anyone explain me what is the tax consiqueses u/s 10(5) to the individual assessee as well as to the company.