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LTC Cash Voucher Scheme Calculator – Estimate Cash Benefit for Central Government Employees

Also calculate maximum amount to be spent to avail complete cash benefit out of this Scheme and Cash benefit you are getting based on the amount you can spend

LTC Cash Voucher Scheme – Calculator for Special Cash Package in lieu of LTC for Central Government Employees

Needless to say, the most talked about news on Central Government Employees in the recent days is the LTC Cash Voucher Scheme announced by Govt on 12.10.2020. Typically mimicking the coupon schemes and cashback schemes prevailing in E-Commerce businesses, Govt has evolved this Special Cash Package in lieu of LTC for Central Government Employees.

LTC Leave Encashment option for Central Government Employees existing as of now provides for payment by cash equivalent to 10 days of basic pay and DA on surrendering 10 days of Earned leave by an employee while availing Leave Travel Concession. For availing this benefit, there is no need for go on leave for 10 days. Either by availing EL or Casual Leave not less than one day, an employee can proceed on All India LTC or Home Town LTC and get the cash benefit of 10 days of basic pay and DA as Leave Encashment.

Checkout this previous GConnect article on Leave Encashment for Central Government Employees while availing LTC

What does the latest LTC Cash Voucher Scheme provide for Central Government Employees ?

One of the main benefits of the latest LTC Cash Voucher Scheme is the Employees need not proceed on Leave Travel to avail the reimbursement. This relaxation is not available in the existing LTC Leave Encashment option. Also as per the policy framework of the scheme, while getting 100% of leave encashment and 50% of the value of deemed fare as advance, the stipulated amount can be spent within the current financial year.

One of the main drawbacks in the LTC Cash Voucher Scheme is an Employee who is willing avail this Scheme, will have to spend an amount equivalent to 3 times of the Deemed Fare and 1 time of the Leave Encahment. Considering the present situation of coping up with the reduced Salary till July 2021 on account of DA freeze, though employees will be willing to avail this scheme it be very difficult them to spend more than three times of the cash beneift they get out this scheme.

However, LTC Cash Voucher Scheme will be very beneficial to Employees who have the necessity of buying goods or services for a considerable value during this year. They can avail this cash reimbursement / Cashback benefit while spending the stipulated amount which they will to pay any way for the Goods and Services they have intended to buy.

To facilitate the Employees who are willing to avail this scheme, GConnect has come up with a LTC Cash Voucher Scheme estimating tool.

This Calculator will be useful especially when stipulated amount to be spent is lesser than the maximum amount to be spent for availing complete cash benefit out of LTC Cash Voucher Scheme.

How to use LTC Cash Voucher Scheme Calculator ?

1. Select your pay level

2. Enter your present basic pay.

3. Select number of members in your family for whom LTC Cash Voucher Scheme is intended to be availed.

Special Cash Package in lieu of LTC

Calculations

Salient Features of LTC Cash Voucher Scheme Special Cash Package in lieu of LTC for Central Government Employees

The deemed LTC fare for this purpose is given below :-

Category of employees Deemed LTC fare per person
(Round Trip)
Employees who are entitled to business class of airfare Rs. 36,000
Employees who are entitled to economy class of airfare Rs. 20,000
Employees who are entitled to Rail fare of any class Rs. 6,000
  • The cash equivalent may be allowed if the employee spends a sum 3 times of the value of the fare given above.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.

Checkout this Office Memorandum dated 12.10.2020 for more details on LTC Cash Voucher Scheme (Special Cash Package in lieu of LTC for Central Government Employees)

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