Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated 10th November, 2020
Subject: Clarification regarding queries being received in respect of Special cash package equivalent of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21 (FAQ No. 2).
The undersigned is directed to say that this Department has been receiving a number of queries relating to Special Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21 announced by the Government on 12th October, 2020. A set of frequently asked questions have already been clarified vide this Department’s O.M. of even No. dated 20th October, 2020 and is available on this Department’s website viz. doe.gov.in.
- A further set of frequently asked questions have been clarified and are attached herewith at Annexure-`A’.
- This issues with the approval of Competent Authority.
Deputy Secretary E.II(A)
All Ministries/Departments of the Government of India
FAQ NO 2
FAQ ON LTC CASH VOUCHER SCHEME
No. The scheme is in lieu of one LTC available during the block year.
Leave encashment is to be in accordance with LTC Rules. The employee can however avail the benefit of scheme without the leave encashment if such encashment is not available.
Yes. He can claim leave encashment as per the scheme provided it does not exceed the maximum limit of 60 days eligible for encashment.
Reimbursement will be on pro-rata basis.
Purchase of any goods or services which attract GST of 12% and above qualify for reimbursement under this scheme. Purchases on EMI basis are also permissible. The purchase should have been effected after the issue of the order i.e. 12.10.2020 and should have an invoice.
The scheme is valid up to 31.3.2021 and is in lieu of the available LTC. An official may avail LTC for 2021 in 2021 provided the same has not been foregone in lieu of the benefits of the said scheme.
Yes, but one block year of LTC/ or one LTC to be foregone to avail the benefits of the Special Scheme.
As per scheme Goods & Services attracting GST of 12% or more can be purchased.
No. He can avail only deemed fare value.
Yes, provided the transactions occurred on or after 12.10.2020 and bills are submitted before 31.03.2021.
Yes. Provided the child is eligible as a dependent in accordance with LTC Rules.
Autonomous Bodies can adopt the scheme provided they are already implementing LTC scheme similar to the Central Government’s Scheme, before 12.10.2020.
Please refer to para 4 Of Ministry of Finance, Department of Expenditure OM No.12(2)/20/E-IIA dated 12.10.2020. It has been stated that 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 employee.
Yes. An individual can purchase different items which attract GST of 12% and more. The payment should be made through digital mode.
This scheme is for the LTC block of 2018-21. Normally, a block contains two LTC fare [home town and anywhere in India]. If one has been availed and the other remaining, the same can be utilized for this purpose. Any unutilized LTC of the block of 2018-21 is eligible.
Any purchase with digital mode is to be supported by invoice. Based on production of invoice the spending is calculated. The intention of this scheme is to encourage every mode of purchase. It is for the employee to choose a suitable digital mode.
All eligible purchases on or after 12.10.2020 and before 31.3.2021 can be counted.
The Special Cash Package Scheme in lieu of one LTC is to compensate and incentivise consumption by Government Employees and the benefits can be availed up to 31.03.2021. Para 4 of O.M. dated 12.10.2020 provides for advance to Government employees in lieu of LTC fare and Leave encashment. As this is a Special Cash Package, the rules relating to advance taken under LTC are not applicable in the present scheme. Accordingly it is clarified that:
(i) The advance taken under the scheme shall be settled on or before 31st March 2021, and
(ii) the invoices of the goods and services purchased as per the scheme may be in the name of spouse or any family member who are eligible for LTC Fare as declared in the Service records.