LTC Cash Voucher Calculation Formula 2025

LTC cash voucher calculation for without leave encashment – Example with Calculator

The Leave Travel Concession (LTC) Cash Benefit Voucher Scheme is a little bit confusing on the calculation with or without encashment. As per the recent clarification issued by the Department of Expenditure on 25 November 2020, the lesser amount between actual expenditure and notional fare only will be taken for the account of the full cash benefit. The below table describes the full cash benefit for all categories.

Category	2 Members	Full Cash Benefit
6,000	12,000	36,000
20,000	40,000	1,20,000
36,000	72,000	2,16,000
Category	3 Members	Full Cash Benefit
6,000	18,000	54,000
20,000	60,000	180,000
36,000	108,000	324,000
Category	4 Members	Full Cash Benefit
6,000	24,000	72,000
20,000	80,000	240,000
36,000	144,000	432,000
Category	5 Members	Full Cash Benefit
6,000	30,000	90,000
20,000	100,000	300,000
36,000	180,000	540,000
Category	6 Members	Full Cash Benefit
6,000	36,000	108,000
20,000	120,000	360,000
36,000	216,000	648,000
Category	7 Members	Full Cash Benefit
6,000	42,000	126,000
20,000	140,000	420,000
36,000	252,000	756,000
Category	8 Members	Full Cash Benefit
6,000	48,000	144,000
20,000	160,000	480,000
36,000	288,000	864,000
Category	9 Members	Full Cash Benefit
6,000	54,000	162,000
20,000	180,000	540,000
36,000	324,000	972,000

LTC Cash Voucher Calculation Formula

LTC Cash Benefit = Amount Spend x Deemed LTC Fare / Amount to be Spent for Full Cash Benefit

Example (1) (without Leave Encashment)

Claiming for family of 4 eligible for economy class air travel.

Fare Value : Rs.20,000 x 4 = Rs.80,000

Amount to be spent for full cash benefit = Rs.80,000 x 3* = Rs.2,40,000

• 3 times of notional airfare (80,000 x 3=2,40,000)

Cash benefit = Amount Spent X deemed LTC (80,000 in this case)/ Amount to be spent for full cash benefit

Thus, if an employee spends say Rs.2,40,000 or above, he will be allowed cash amount of Rs.80,000. However, if the employee spends less than Rs.2,40,000, say 1,80,000 then he may be allowed cash amount in the same proportion as illustrated above which comes out Rs.60,000 in this case.

[1.80,000 x 80,000 = 60,000] / 2,40,000

Example (2) (without Leave Encashment)

Claiming for family of 4 eligible for Train travel.

Fare Value : Rs.6,000 x 4 = Rs.24,000
Amount to be spent for full cash benefit = Rs.24,000 x 3* = Rs.72,000

Cash benefit = Amount Spent X deemed LTC Fare (24,000 in this case)/Amount to be spent for full cash benefit

• 3 times of notional trainfare (24,000 x 3=72,000)

Thus, if an employee spends Rs.72,000 or above, he will be allowed cash amount of Rs.24,000. However, if the employee spends less than Rs.72,000 say 48,000 then he may be allowed cash amount in the same proportion as illustrated above which comes out Rs.16,000 in this case.

[(48,000 x 24,000/72,000) = 16,000].