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

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 incentive 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 :-

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.

Also check: LTC Fare list September 7, 2020 – Central Government Employees

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.

Also check: Relaxation of purchase of air tickets from authorized Travel Agents for the purpose of LTC

Hindi version of this Office Memorandum will follow.

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

To

 All the Ministries/ Departments of the Government of India.

Source: DoE

The post FinMin Order – Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Finance Minister Nirmala Sitharaman today addressed the media on key economic issues. The following schemes are announced for Central Government Employees in this meeting :

1. The interest-free advance of Rs 10,000 under the Special Festival Advance Scheme to be paid back in 10 instalments.
2. The one-time disbursement of Special Festival Advance Scheme is expected to amount to ₹4,000 crore; if given by all state governments, another ₹8,000 crores is expected to be disbursed. Employees can spend this on any festival.
3. Special Festival Advance Scheme for non-gazetted employees is being revived as a one-time measure, for gazetted employees too.
4. All central govt. employees can now get an interest-free advance of Rs.10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021
5. Special Festival Advance Scheme is being revived as a one-time measure. All central govt. employees can now get interest-free advance of Rs. 10,000, recoverable in maximum 10 installments: Finance Minister
6. Employees will get pre-loaded Rupay Card of the advance value
7. Under LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus 3 times the ticket fare, to buy items that attract GST of 12% or more. Only digital transactions allowed, GST invoice to be produced, said Sitharaman.
8. Under the previous Special Festival Advance scheme only non-gazetted officers were eligible to avail benefits of the scheme but this time all central government employees will be eligible for the scheme, Ms Sitharaman added.
9. The government also allowed its employees to spend travel allowances that are an income-tax-exempt part of their salaries on goods and services, Ms Sitharaman told a news briefing.

“This is expected to create a consumer demand of about ₹ 28,000 crore,” she said

Also check: Finance minister declared that all central government employees would get LTC cash voucher scheme and special festival advance

The post Special festival advance scheme for central government employees – PIB appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.