Queries regarding special cash package equivalent in lieu of LTC Fare for CGEs during the block 2018-21 (FAQNo.3)
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 (FAQNo.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.
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.).
(S.Naganathan)
Deputy Secretary (E.II.A)
Annexure
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 Fare (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 = 16,000].
72,000