LTC Cash Voucher Scheme Calculator 2021

Central Government announced LTC Cash Voucher Scheme for Central Government employees, under LTC Cash Voucher Scheme government employees can opt to receive cash amounting to leave encashment + 3 times ticket fare, to buy something of their choice. The items bought should be those attracting GST of 12% or more. Only digital transactions are allowed, GST Invoice to be produced. Check below for LTC Cash Voucher Scheme Calculator.

LTC Cash Voucher Scheme Calculator 2021

LTC Cash Voucher Scheme Calculator 2021

LTC Cash Voucher Scheme Calculator 2021
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LTC Cash Voucher Scheme for Central Government Employees – FINMIN Order

F.No.12(2)/2020-EII(A)
Ministry of Finance
Department of Expenditure
EN(A) Branch

North Block, New Delhi
12th October, 2020

Office Memorandum

Sub : Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21.

In view of Covid-19 pandemic and resultant nationwide lockdown as well as disruption of 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.

2. With a view to compensate and incentivise consumption by Central Government employees thereby giving a boost to consumption expenditure, it has been decided that cash equivalent of LTC, comprising Leave Encashment and LTC fare of the entitled LTC may be paid by way of reimbursement, if an employee opts for this in lieu of one LTC in the Block of 2018-21 subject to the following conditions:-

a) The employee spends the money of a larger sum than the entitlement on account of LTC on actual expenditure.

b) Cash equivalent of full leave encashment will be allowed, provided the employee spends an equal sum. This will be counted towards the number of leave encashment on LTC available to an employee.

c) The deemed LTC fare for this purpose is given below :-

Category of employeesDeemed LTC fare per person
(Round Trip)
Employees who are entitled to business class of airfareRs. 36,000
Employees who are entitled to economy class of airfareRs. 20,000
Employees who are entitled to Rail fare of any classRs. 6,000

d) The cash equivalent may be allowed if the employee spends a sum 3 times of the value of the fare given above.

e) The amount both on account of leave encashment and fare shall be admissible if the employee spends (i) an amount equal to the value of leave encashment and; (ii) an amount 3 times of the cash equivalent of deemed fare, as given above on purchase of such items / availing of such services which carry a GST rate of not less than 12% from GST registered vendors / service providers through digital mode and obtains a voucher indicating the GST number and the amount of GST paid.

f) 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 as per example given at Annexure-A.

g) While TDS is applicable in the case of leave encashment, 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 LTC fare.

3. Head of the Departments / DDOs may make reimbursement under this package as per the details given above on receipt of invoices of purchases made / services availed during the period post the issuance of this order from the employees who are desirous to avail this package. It may be noted that in order to avail this package an employee should opt for both leave encashment and LTC fare.

4. An amount upto 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 production of receipts towards purchase and availing of goods and services as given in Para 2(e). The claims under this package (with or without advance) are to be made and settled within the current financial year. 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-utilisation and recovery of unutilized portion of the advance with penal interest.

5. 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.

6. All the Ministries/Departments are requested to bring the contents of this OM to the notice of all its Attached and Subordinate offices for their information.

Hindi version of this Office Memorandum will follow.

(B.K.Manthan)
Deputy Secretary to the Govt. of India


Important Orders on LTC Cash Voucher Scheme

LTC Cash Voucher Scheme – Nirmala Sitharaman announces for Government Employees

LTC Cash Voucher Scheme for Central Government Employees – FINMIN Order

LTC Cash Voucher Scheme – Finmin released FAQ-2

[FAQ 3] – LTC Cash Voucher Scheme – Finmin Clarification


LTC Cash Voucher Scheme – Important FAQs

Can an employee avail leave encashment for less than 10 days ?

The number of days of Leave encashment for LTC (10 days or less than 10 days) is to be in accordance with the relevant provisions of LTC rules.

An employee whose workplace and hometown are same and is eligible for only one all India LTC in one Block Year. If that LTC is exhausted, will he be eligible for this scheme?

No. The scheme is in lieu of one LTC available during the block year.

If an employee avails only deemed LTC fare without leave encashment, and spends less than or equal to three times of the deemed fare entitlement, how much reimbursement will he get?

Reimbursement will be on pro-rata basis.

Since the fresh recruits are not allocated block year, can they avail this scheme?

Yes

If a defence employee wants to buy a car from defence canteen, attracting only 14% GST as against 28% GST in the market, can he avail this scheme?

As per scheme Goods & Services attracting GST of 12% or more can be purchased.

If an employee has already exhausted 60 days of Leave Encashment, can he further avail 10 days Leave Encashment?

No. He can avail only deemed fare value.

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