1. The Government vide office memorandum no. F.No. 12(2)/2020—EH(A) dated 12 October 2020 announced the Cash Voucher LTC (Leave Travel Scheme) scheme for Government employees.
2. What is LTC Scheme? The Leave Travel Scheme is assistance received by the employee from his employer for traveling on leave. The employee and family can visit anywhere in India once in a block of 04 years. The current block period is 2018-21.
3. An employee can avail leave encashment for a maximum of 10 days during the period he avails LTC The leave encasements are payable on Basic pay + Dearness Allowance as on commencement of LTC.
4. In view of the Covid-19 pandemic and resultant nationwide lockdown as well as disruption of the transport and hospitality sector, as also the need for observing social distancing, a number of Central Government employees are not in a position to avail themselves of LTC for travel to any place in India or their Hometowns in the current Block of 2018-21.
5. With a view to compensate and incentivise consumption by Central Government employees thereby giving a boost to consumption expenditure, it has been decided by the Government that the cash equivalent of LTC, comprising Leave Encashment and LTC fare of the entitled LTC may be paid by way of reimbursement.
6. Conditions for reimbursement: The cash equivalent of entitled LTC Fare and leave encashment will be given to the employee subject to the following conditions:
6.1 The employee spends an amount equal to the value of leave encashment and an amount 3 times of the cash equivalent of deemed fare, on purchase of items or avail services.
6.2 The item purchase or services availed shall carry a GST Rates not less than 12%.
6.3 Such purchase shall be from GST registered vendors/service providers through digital mode
6.4 The employee shall obtain a voucher indicating the GST number and the amount of GST paid.
7. Deemed LTC fare: – The deemed LTC fare for this purpose is as follows:-
| Sl | Category of employees | Deemed LTC fare (per person Round Trip) |
| (i) | Employees who are entitled to business class of airfare | Rs. 36,000 |
| (ii) | Employees who are entitled to economy class of airfare | Rs. 20,000 |
| (iii) | Employees who are entitled to Rail of any class | Rs 6000 |
8. Illustration :
The Basic Pay of an employee is Rs 1,38, 500 per month, and has a Family of 4 eligib1e for economy c1ass Air travel. The present DA rate for central Government employees is 17% of Basic Pay.
| (a) | Calculation of Leave Encashment:-
( Basic + DA)* No. of days leave enchased/30 (138500+23545)*10/30 |
Rs. 54015 | |
| (b) | Fare Value (assuming entitled for economic class) 20000*4 | Rs 80000 | |
| (c ) | The employee needs to spend 3 times of notional fare (80000*3) | Rs. 240000 | |
| (d) | Total amount to be spent for full cash benefit ( a+c) | Rs. 2,94,015 |
9. The admissible payment shall be restricted to the full value of the package leave encashment as admissible for LTC and deemed fare or depending upon the spending.
9.1 In case the employee spends fare amount only, Rs. 2, 40,000 in the above example, the total amount payable will be calculated as follows:
| (a) | Calculation of % of leave encashment to the total amount to be spent | (54015/294015) * 100 | 18% |
| (b) | Calculation of % of fare amount to the total amount to be spent | (80000/294015)*100 | 27% |
| (c ) | Proportionate amount payable : 3 times of notional fare * % of leave encashment | 2,40,000* 18% | Rs. 43,200 |
| (d) | Proportionate amount payable : 3 times of notional fare * % of fare amount | 2,40,000*27% | Rs. 64800 |
| (e) | Total amount payable ( c+d) | Rs. 1,08,000 |
10. Other Salient Features of the Scheme:-
10.1 Optional Scheme:- It is not mandatory for an employee to opt for the scheme. If opted, the reimbursement will be given as per the calculation above. However, in order to avail of this package, an employee should opt for both leave encashment and LTC fare.
10.2 Tax Exemption Since the cash reimbursement of LTC fare is in lieu of deemed actual travel, the same shall be allowed exemption on the lines of existing income-tax exemption available to LTC fare. The legislative amendment to the provisions of the Income-Tax Act, 1961 for this purpose shall be proposed in the due course. Hence, TDS shall not be required to be deducted on the reimbursement of deemed LTD fare.
10.3 Advance Payment An amount up to 100% of leave encashment and 50% of the value of deemed fare may be paid as advance into the bank account of the employee which shall be settled based on the production of receipts towards purchase and availing of goods and services as prescribed
10.4 Settlement of Claim The claims under this package (with or without advance) are to be made and settled within the current financial year.
10.5 Recovery on non-utilization: Non-utilization/under-utilization of advance is to be accounted for by the DDOs in accordance with the extant provisions relating to LTC advance i.e. immediate recovery of full advance in the case of non-utilization and recovery of an unutilized portion of the advance with penal interest
10.6 Effective Period These orders will take effect from the date of issuance of this Office Memorandum and will be in force during the current financial year till 31st March 2021.
The Author can be approached at caanitabhadra@gmail.com
Author Bio
Sir/Mam I have availed 2020 LTC for hometown. Can I avail this scheme(LTC special cash package) against my 2021 LTC using bills from 12 oct 2020 to 31 march 2021. Please clarify
Please suggest
On the basis of my pay scale and number of members I am eligible to get Rs129000/- including leave encashment and fair. And I have to spent minimum Rs. 329000/-
My question is. If I want to purchase a small car than can I down payment 150000/- only and rest on auto loan?
Can any one give option/intimation for this special LTC Scheme on or after 01/01/2021 to avail the Block Year 2018-19 (extended upto 31/12/2020) since the Block year 2018-19 has lapsed on 31/12/2020. Plz clarify.
In Ltc spacial cash package scheme is it compulsory to payment through own account/card. Can I make payment through friend/relative credit card.
Madam, I had bought a term insurance around May 2020. Can this service be used for LTC?
Can I purchase a bike paying cash instead of through digital mode under special LTC cash scheme
Deemed fair for pay matrix label-5
Madam,
Suppose I make (advance in digital IMPS) down-payment for house purchase and will get loan on balance amount by banks. I also pay registration fees to Govt. during registration of property. Will any of these be eligible for LTC cash voucher scheme?
mam,my joining date in govt service is 05/10/2018.
can i avail new LTC cash package scheme?
Madam,
Suppose I am making (advance in digital IMPS) down-payment for a house purchase and will get loan for balance amount. I also pay registration fees to Govt. when registering my property. Will any of these be eligible for LTC cash voucher scheme?
Madam, Payment for LTC buying goods can be done by own credit card or not
Respected Madam,
I purchased car in the month of Dec,2020 , so can i submit the invoice of the car to the office to avail special package LTC.
Hi,
I am looking to purchase car in wife’s name. Can she make payment for the purchase from her account? She is eligible for LTC in service records.
Can we purchase gold for my spouse in lieu of LTC ?
Can I avail the cash voucher LTC scheme if the invoice for goods purchased is in the name of my unemployed brother?
is amount of Leave Encashment along with deemed LTC fare under LTC cash voucher scheme taxable?
Sir/mam can I purchase a car on the name of my unmarried daughter.Pl.let me know
I’m a new recruit. I don’t have enough EL to avail leave encashment. Am I eligible for this special package scheme ? If yes, Will I face any kind of deduction in the entitled amount?
Suppse I am going to purchase a new car through bank loan in my name @ 18% GST, whether this may be considered under the requisite expenditure criteria of the Special Cash package of LTC and invoice may be utillise fo sttlement claim or otherwise.
Mam, Can I buy holiday package from Club Mahindra which fetches 18% GST for availing Cash Voucher LTC.
I want to buy a car in February 2021. Then if I opt the LTC Block year 2018-20 in the LTC special package, will it be reimbursed as i will submit bills after Dec 2020 only?
Can I take benefits on tax exemption for expenses on medical treatment incurred on my senior citizens parents.
Can I avail this schem without taking advance and directly submit my bill before 31st March 21.
Respected Sir,
Pls clarify to me how much family member are entitled for LTC special cash package and same where is mentioned. On urgent basis please
Regards,
Will an investment in an ULIP scheme be eligible
I want to avail this scheme without leave encashment. Is it possible
Can I buy gold biscuits and make use of this scheme?
I have a wife and two children of 9 years and 6 months. How many family members will be counted for calculation of LTC encashment?
Sir, I want to avail LTC special scheme only for part of my family members. Without employee as me, if LTC new scheme sanctioned with 10 days encashment. Pse confirm.
I have applied for sanction of this scheme.. can I purchase the article prior to sanction from my office?
Hello ,
My baby is 7 months old…. So i count him…
I entitled for 6000/- each category.
Can I finance car (completely) against this ltc scheme
Is that essential for when I will bought a product on LTC before intimatated to my office.. Please confirmed me.
I have already availed and claimed LTC for other than home town for the block 2018-2021 in Dec 2019. My case is closed too. But this new DOPT made me confused? Do I need to submit the form A and form B to get back restored, EL and EL encashment?
क्या अपनी कार का insurance करवा सकते है एलटीसी क्लेम मैं
Madam,
in this package, will there be deduction of 10 day earned leave from my balance leave in lieu of leave encashment?
I have hometown LTC unutilised, the block year ending during December 20. If I’m buying a car for which final invoice will be issued by the supplier during Feb’21 or Mar’21 only whether I am eligible for reimbursement?
Whether we can pay through Credit Card of Spouse of Govt. Servant for availing speical cash package in lieu of LTC.
Those who are non entitled LTC by Air but they can avail LTC Port Blair in lieu of Home Town in bifurcation Delhi to Kalcutta by train and Kolcutta to Port Blair by Air. In this case how to calculate the claim. Please clarify;
Madam,
Those are non entitled for air fare but they are availing home town in lieu to Port Blair. How would be calculated the their reimbursement (either as per deemed fare mentioned in circular Rs. 6000/- or as per bifurcation by Train upto Kolkata and by air Kolkata to Port Blair). Please clarify;
1) If my dependents only, goes in a journey ( Air / Train/ Road) then in that case tickets or invoice containing details of tax will have name of my dependents only and not in my name.
2) Any professional course (e.g. music, games & sports, computer related, etc.) purchased for dependents containing their name?
3) Health and term Insurance purchased on other’s name ( may or may not dependents)?
In all the above cases although payment may have been done digitally from my account, whether they will qualify?
Can I purchase gold?
Mam
Please explain the following:-
1.Is leave encasement mandatory if i opt this scheme?
2.if leave encasement mandatory then will it cut my opportunity of leave encasement 5 times in job?
What items purchase in leu of LTC.Can I purchase bike or scooty?
madam,
Thank you for the article,I am under the impression that there is no upper limit on the amount spend, but one question is that leave encashment has a upper limit of 10 days , so will that be the max amount that will be granted under the leave encashment or the corrosponding percentage is given irrrespectively?
What items we can purchase in lieu of LTC. Can we purchase AC & Furniture?
mam, services includes installation of modular kitchen
Can I claim this benefit if bill is in the name of depend not employee ?
I would like to inform that I have availed LTC to anywhere during February, 2020. I am entitled to avail LTC to HomeTown for the block year 2018-21. But since scheme is from 13th October till 31st March 2021. So can i apply for the LTC to hometown to aval this special cash package scheme…
This is quite well explained, Anita. Thank you.