FAQ No 2 on Special LTC Cash Package Scheme for CG Employees

Recently the Department of Expenditure issued an important notification regarding the subject of new Leave Travel Concession Fare Cash Payout Scheme for Central Government Employees.

1. LTC Special Cash Package Scheme FAQ No 1 – Click to read
2. LTC Special Cash Package Scheme FAQ No 2 – Click to read
3. LTC Special Cash Package Scheme FAQ No 3 – Click to read
4. LTC Special Cash Package Scheme FAQ No 3 – Click to read

Clarification on Special cash package in lieu of Leave Travel Concession Fare during the Block Year 2018-21: FAQ 2 by FinMin Dated on 10 November 2020

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.

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.

sd/-
(S.Naganathan)
Deputy Secretary E.II(A)

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

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 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.

Click to download the Finmin Clarification Order as pdf

CSD AFD purchase is accepted for claiming in LTC Cash Voucher Scheme?

Yes, whatever the service or goods purchased above 12% of GST are all accepted to claim in the LTC cash benefit scheme.

What is the age of the dependent child in the LTC Cash Voucher Scheme?

The age of the child is dependent on the scheme in accordance with the LTC Rules.

What is the eligible block year for LTC Cash Voucher Scheme?

2018-19, 2020-21 block years are eligible for this scheme. Any unutilized LTC block year is eligible for claiming the benefits.