Central Employees (Government Employees) will now be able to take advantage of LTC Cash Voucher more easily. In order to take advantage of this scheme, central employees can submit more than one bill for anything or services purchased in their name. The Department of Expenditure of the Ministry of Finance has released FAQs (FAQs) regarding this scheme. 

What was the rule before, what happened now

Let us tell you that on October 12, the government announced the LTC Cash Voucher Scheme. According to which any central government employee can avail of this scheme by 31 March 2021 by purchasing goods or services of 12% or more GST. Earlier, according to the rule of the government, if someone had to take advantage of this scheme, then he had to travel, otherwise he would not get the benefit of this allowance. Now the Finance Ministry has made it clear that the employees can take advantage of this scheme without any leave encashment.

How did the employees get relief

The ministry said, ‘Since the scheme is optional, if an employee is unable to use the LTC fare for this purpose, then they can avail it under the extant instructions of the LTC (Leave Travel Concession) rules. It has been clarified in the FAQs that employees can be given many bills under this scheme, but the condition for this is that the claim and its settlement should be before 1 March 2021. 

Scheme applicable on the remaining LTC also

In some of the FAQs, a question was also asked that if the part of LTC used under the scheme has been used by the employee or his family members, will the scheme benefit in such a way. It has been told by the government that, this scheme will also be applicable on the LTC fare left during the block year (2018-21). Another question is that if four members of an employee’s family are eligible for LTC, can the scheme be availed on lesser members also, the FAQs state that in such cases the LTC portion of the eligible family of the employee scheme Can take equal partial benefits.


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