No. 12(2)/2020-E.Il(A)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 31st March, 2021

OFFICE MEMORANDUM

Subject: Clarification regarding full and final settlement of bills/claims pertaining to LTC Special Cash Package Scheme.

The undersigned directed to refer to point no. 11 of FAQ-1 of this Department issued vide O.M. of even No. dated 20th October 2020 and point no. 1 of FAQ-4 issued vide O.M. dated 10th March 2021 clarifying that “as far as possible, the claims should be made and settled well before 31st March 2021. Ministries/Departments may consider the settlement of only those claims/purchases made on or before 31st March 2021 beyond the due date, i.e, 31st March 2021”.

2. In this regard, it stated that queries are being received in this Department with respect to purchases made up to 31st March 2021 (including online purchases) and submissions of bills/claims and settlement beyond 31st March 2021. Keeping in view of practical difficulties in submission of bills/claims for purchases made particularly in late hours of 31st March 2021(including on-line purchases), it is clarified that submission of bills/claims may be entertained and settled by Ministries/Departments not later than 30th April 2021. However, it is reiterated that the payment for the purchases should be made not later than the due date i.e. 31st March 2021.

3. This issues with the approval of competent authority.

(Prateek Kumar Singh)
Dy. Secretary to the Government of India

All Ministries/ Department’s of Govt. of India

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No.12(2)/2020/E-II.A
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 10th March, 2021

OFFICE MEMORANDUM

Subject: Clarification regarding queries being received in respect of Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the block 2018-21.

The undersigned is directed to say that this Department has been receiving a number of queries relating to Special Cash 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. Three sets of Frequently Asked Questions (FAQs) have already been clarified vide this Department’s O.M. of even number dated 20th October 2020, 10th November 2020, and 25th November 2020 on the subject mentioned above.

2. A further set of frequently asked questions have been clarified and are attached herewith at Annexure-‘ A’.
3. This issues with the approval of Competent Authority.

FAQ 3 on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

(Sunil Kumar)
Under Secretary to the Govt. of India

All Ministries/ Departments of the Government of India.

FAQ

Special Cash Package equivalent to the Leave Travel Concession Fare for Central Government Employees

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No.12(2)/2020/E-II.A
Government of India
Ministry of Finance
Department of Expenditure

North Block New Delhi
Dated 16th February, 2020

OFFICE MEMORANDUM

Subject: Clarification regarding queries being received in respect of Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the block 2018-21.

The undersigned is directed to refer to O.M. of even number dated 12th October 2020 and the Frequently Asked Questions (FAQs) issued vide OM of even number dated 20th October 2020, 10th November 2020 and 25th November 2020 on the subject mentioned above.

2. Ministries/ Departments have raised queries/clarifications with regard to :

(i) Whether any prior intimation is required just like availing of the actual LTC Scheme?

(ii) The LTC for the year 2018-19 Block was extended upto 31st December 2020. Whether claims can be made under this block till March 2021?

FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

3. In this regard it is clarified that the Special Cash Package is in lieu of pending LTC for the Block between 2018-21 and bills for availing this scheme are to be submitted before 31.03.2021. No prior intimation as is being given in the case of LTC Scheme is required and for the year 2018-19 (extended till 31.12.2020), the claims can be made before 31.03.2021.

4. This issues with the approval of Competent Authority.

sd/-
(Sunil Kumar)
Under Secretary to the Govt. of India

Click to view the order in PDF

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No.12(2)/2020/ E.II.A
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 25th November, 2020

OFFICE MEMORANDUM

Subject:- Clarification regarding queries being received in respect of Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the block 2018-21 (FAQ No.3)

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. Two sets of frequently asked questions have already been clarified vide this Department’s OM of even no. dated 20th October, 2020 and 10th November, 2020 are available on this Department’s website viz. doe.gov.in.

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

2. A further set of frequently asked questions have been clarified and is attached herewith at Annexure below.

3. This issues with the approval of Secretary (Exp.).

All Ministries/ Departments of the Government of India

(S.Naganathan)
Deputy Secretary (E.II.A)

FAQ 3 on LTC Cash Voucher Scheme

FinMin Order – Grant of Festival Advance to Central Government Employees

Source: DoE

The post FAQ 3 on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

No.4/3/2020-Bt. DG/Misc/352
Government of India
Directorate General of Works
Central Public Works Department
(Budget Section)

New Delhi, the 5th November 2020.

Office Memorandum

Subject: Furnishing information regarding no. of employees opting for LTC Cash Voucher Scheme and Festival Advance Scheme – reg.

The information on the subject mentioned above is required immediately for onward submission to Department of Expenditure, Ministry of Finance w.r.t. their OM No. 12(2)/2020- E.II(A) dated 03.11.2020.

The information may be sent immediately by 05.11.2020 evening through mail at samsher.ali@gov.in / whatsapp 9540029788. This information is required to be submitted on 1st day of every month.

All divisions may ensure that their information must be received in this office through their respective SDG/ADG in their compiled report. It is requested not to send the above information directly to this office.

LTC / FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

(Samsher Ali)
Director (Finance), CPWD

FinMin Order – Grant of Festival Advance to Central Government Employees

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No. 12(2)/2020- E.II(A)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 10th November, 2020

OFFICE MEMORANDUM

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.

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

2. A further set of frequently asked questions have been clarified and are attached herewith at Annexure -‘A’.
3. This issues with the approval of Competent Authority.

(S.Naganathan)
Deputy Secretary E.II(A)

All Ministries /Departments of the Government of India

FAQ NO 2

FAQ ON LTC CASH VOUCHER SCHEME

1. 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.

2. If an employee does not have enough leave or less than the minimum balance of 40 days which is required in his leave account and avail leave encashment for LTC, whether he will be eligible for leave encashment in this scheme?

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.

3. If an employee has already availed hometown LTC (only for self) for 2018-19 along with leave encashment, can he now claim LTC cash voucher scheme with LTC for self from block year 2020-21 and for remaining family members from block 2018-19?

Yes. He can claim leave encashment as per the scheme provided it does not exceed the maximum limit of 60 days eligible for encashment.

4. If both husband and wife are working in the central government, if one is availing LTC cash voucher scheme for self and spouse and also taking LTC leave encashment, then can the spouse avail LTC leave encashment separately?

Yes

5. 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.

6. Whether purchase of goods/ services on loan/EMI, will be covered under this scheme?

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.

7. For those officials having three Hometown LTCs and one all India LTC, can they avail special cash package for year 2020 in 2021 (upto 31.03.2021) and avail LTC for 2021 also in 2021?

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.

8. If a fresh recruit who is governed by LTC Rules for New Recruits is in his 8th year after recruitment opts for this scheme, can he submit bills having date of January-March 2021?

Yes, but one block year of LTC/ or one LTC to be foregone to avail the benefits of the Special Scheme.

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

Yes

10. Can the payment be made by cheque /DD / Banker’s Cheque/ NEFT/ RTGS?

Yes

11. 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.

12. 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.

13. If an employee is availing Cash scheme against year 2018-19 (extended till 31.12.2020), can he submit bills from January, 2021 to March, 2021?

Yes, provided the transactions occurred on or after 12.10.2020 and bills are submitted before 31.03.2021.

14. If a child is less than 5 year old then he is not eligible for rail fare, will he be counted as a dependent for this scheme?

Yes. Provided the child is eligible as a dependent in accordance with LTC Rules.

15. Is this scheme applicable to the Autonomous Bodies?

Autonomous Bodies can adopt the scheme provided they are already implementing LTC scheme similar to the Central Government’s Scheme, before 12.10.2020.

16. Whether any advance will be given like LTC advance?

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.

17. Whether we can purchase different items under this scheme like we purchase washing machine, mobile, AC or not?

Yes. An individual can purchase different items which attract GST of 12% and more. The payment should be made through digital mode.

18. I availed home LTC in 2019. What is my eligibility position for LTC cash voucher scheme?

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.

19. How spending of 3 to 4 times on purchasing of products will be tracked? Will purchase made online from e-commerce website be acceptable?

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.

20. I purchased certain items after 12.10.2020 but before formally exercising my option. Can it be counted for reimbursement?

All eligible purchases on or after 12.10.2020 and before 31.3.2021 can be counted.

21. Whether the advance taken under the scheme is to be settled within 30 days of disbursal of advance as stipulated under LTC rules. Can receipt be in the name of any dependent?

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.

FAQ 1 – CLICK HERE

FinMin Order – Grant of Festival Advance to Central Government Employees

Source: DoE

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Ministry of Finance

Income-tax Exemption for payment of deemed LTC fare for non-Central Government employees

29 OCT 2020

In view of the 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 employees are not able to avail of Leave Travel Concession (LTC) in the current Block of 2018-21.

With a view to compensate Central Government employees and incentivise consumption, thereby giving a boost to consumption expenditure, the Government of India allowed payment of cash allowance equivalent to LTC fare to Central Government employees subject to fulfilment of certain conditions vide OM No F. No 12(2)/2020-EII (A) dated 12th October 2020. It has also been provided that since the cash allowance of LTC fare is in lieu of deemed actual travel, the same shall be eligible for income-tax exemption on the lines of existing income-tax exemption available for LTC fare.

In order to provide the benefits to other employees (i.e. non-Central Government employees) who are not covered by the above mentioned OM, it has been decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-Central Government employees also. Accordingly, the payment of cash allowance, subject to maximum of Rs 36,000 per person as Deemed LTC fare per person (Round Trip) to non-Central Government employees, shall be allowed income-tax exemption subject to fulfilment of conditions specified in para 4.

The income-tax exemption to receipt of deemed LTC fare by a non-Central Government employee (‘the employee’) shall be allowed subject to fulfilment of the following conditions:-

(a) The employee exercises an option for the deemed LTC fare in lieu of the applicable LTC in the Block year 2018-21.

(b) The employee spends a sum equals to three times of the value of the deemed LTC fare on purchase of goods / services which carry a GST rate of not less than 12% from GST registered vendors / service providers (‘the specified expenditure’) through digital mode during the period from the 12th of October, 2020 to 31st of March, 2021 (‘specified period’) and obtains a voucher indicating the GST number and the amount of GST paid.

(c) An employee who spends less than three times of the deemed LTC fare on specified expenditure during the specified period shall not be entitled to receive full amount of deemed LTC fare and the related income-tax exemption and the amount of both shall be reduced proportionately as explained in Example-A below.

The DDOs shall allow income-tax exemption subject to fulfilment of the above conditions after obtaining copies of invoices of specified expenditure incurred during the specified period. Further, as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime under section 115BAC of the Income-tax Act, 1961 shall not be entitled for this exemption.

The clarifications issued by the Department of Expenditure, Ministry of Finance for the Central Government employees vide OM F. No 12(2)/2020-EII (A) Dated 20th October, 2020 and subsequent clarification, if any, issued in this regard shall apply mutatis mutandis to non-Central Government employees also subject to fulfilment of conditions specified in the preceding paras.

The legislative amendment to the provisions of the Income-tax Act, 1961 for this purpose shall be proposed in due course.

FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21

Example-A

Deemed LTC Fare : Rs.20,000 x 4 = Rs. 80,000

Amount to be spent : Rs. 80,000 x 3 = Rs. 2,40,000

Thus, if an employee spends Rs. 2,40,000 or above on specified expenditure, he shall be entitled for full deemed LTC fare and the related income-tax exemption. However, if the employee spends Rs. 1,80,000 only, then he shall be entitled for 75% (i.e. Rs. 60,000) of deemed LTC fare and the related income-tax exemption. In case the employee already received Rs. 80,000 from employer in advance, he has to refund Rs. 20,000 to the employer as he could spend only 75% of the required amount.

PIB

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No. 12 2/2020 – E.II A
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 20th October, 2020

Office Memorandum

Subject: Clarification regarding queries being received in respect of Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21

The undersigned is directed to refer to this Department’s O.M of even no. dated 12th October, 2020 and to say that this Department has been receiving queries seeking clarification 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. A statement giving answers/ clarifications to the queries is attached as annexure to this O.M.

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

2. This issues with the approval of Secretary Expenditure.

S.Naganathan
Deputy Secretary, E.II A

FAQ on LTC Cash Voucher Scheme

FinMin Order – Grant of Festival Advance to Central Government Employees

Source: DoE

The post FAQ on LTC Cash Voucher Scheme – LTC Fare for Central Government Employees during the Block 2018-21 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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

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