‘Frequently Asked Questions and Answers’ on LTC

Establishment division(A-IV) of Department of Personnel & Training has published an   another useful ‘Frequently Asked Questions and Answers’ regarding the Leave Travel Concession (LTC) for Central Government employees. 

Click read more to view the FAQs and answers.

S.No.	Question	Answer
1.	How are the claims of LTC be adjusted in case of delayed submission?	Where advance has been drawn, the claim for reimbursement shall be submitted within one month of the completion of the return journey. Where no advance has been drawn, the expenditure incurred shall be submitted within three months of the completion of the return journey. Administrative Ministry/Department concerned can admit the claims in relaxation of the provisions subject to the following time limits without reference to DoPT: (a) Where no advance is taken, LTC Bill submitted within a period not exceeding six months; and (b) Where advance has been drawn, claim for reimbursement submitted within a period of three months after the completion of return journey (provided the Govt. servant refunds the entire advance within 45 days after the completion of the return journey. Rule 14 of CCS(LTC) Rules,1988 read with - O.M. No. 31011/5/2007-Estt.A dated 27th September, 2007
2.	Can a Govt. servant visit NER or N&K on more than one occasion on conversion of Hometown under the relaxation allowed for LTC visits to NER/J&K?	Govt. servant who has availed the benefit of Home Town conversion to NER/J&K in one block (say 2006-2009) can again visit NER/J&K in the new/next block (say 2010- 2013) subject to availability of LTC in a allowed particular block so long as the relaxation is in force. 1. O.M No. 31011/4/2007-Estt.(A) dated 02.05.2008  2. O.M No. 31011/4/2007-EStt.(A) date 23.04. 2010  3. O.M No. 31011/2/2003-EStt.(A) dated 18.06.2010
3 .	Can a Govt. employee avail of air travel to NER/J&K in case of All India LTC if his Home town and the Headquarters are at the same place?	Both NER and J&K scheme of LTC allow relaxation for air travel on All India LTC to all categories of employees to the extent specified in the DOP&T’s O.M 31011/4/2007- Estt.(A) dated 02.05.2008 and DOP&T’s O.M 31011/2/2003-Estt.(A) dated 18.06.2010 even if the Hometown and the Headquarters are same.
4.	Whether Govt. servant who has already availed one Home Town LTC in the current block can avail LTC to visit NER?	Yes, he can avail it against All India LTC.
5.	Can a Govt. servant avail the benefit of visiting NER/J&K twice in a particular block of 4 years?	Yes, a Govt. servant can visit NER/J&K by conversion of his Home Town LTC and also by availing All India LTC subject to validity period of the scheme and fulfilling of other conditions.
6.	Can a fresh recruit avail the benefit of Home Town conversion to NER/J&K?	A fresh recruit Govt. servant can also avail benefit of Home Town conversion to NER/J&K against one of the three occasions of Home Town available to him in each block.
7.	Can fresh recruit avail of conversion of Home Town to visit NER/J&K under the relaxation allowed for visiting NER/J&K?	Any Govt. employee can avail of the relaxation for visiting NER/J&K and convert one Home Town LTC for such visit in a block of 4 years as long as the relaxations continue. 1. O.M No. 31011/4/2007-EStt.(A) dated 02.05.2008  2. O.M No. 31011/2/2003-EStt.(A) dated 18.06.2010
8.	Can a fresh recruit Govt. servant avail of All India LTC anytime during the 4 year block?	It can be availed only the block and not at random.
9.	Whether Carry over of LTC is allowed to fresh recruits?	Carry over of LTC is not allowed to fresh recruits as they are eligible for every year LTC for the first 8 years of service.
10.	Who is a fresh recruit entitled for LTC every year?	A person who has joined service for the first time is treated as a fresh recruit for the first eight years. O.M. No. 31011/4/2008-Estt.(A) dated 23.09.2008.
11.	How the LTC entitlements of fresh recruits are regulated in the first eight years?	On completion of one year, the Fresh recruit can be allowed 3 Home Town LTC and 1 All India LTC in each block of Four years in the first 8 years. O.M. No. 31011/4/2008-Estt.(A) dated 23.09.2008.
12.	Whether Dependent parents of fresh recruits can avail LTC for the journey from Home Town to Headquarters and back?	No, the dependent parents of fresh recruits can not avail LTC for the journey from Home Town to Headquarters and back.
13.	Whether claims for reimbursement can be allowed for road journeys by bus/taxi or other vehicle operated by private operators?	LTC Rules do not permit reimbursement for journey by a private car (owned/borrowed/hired) or a bus/van or other vehicle owned by private operators. LTC facility shall be admissible only in respect of journeys performed in vehicles operated by Govt. or any Corporation in the Public sector run by the Central or State Govt. or a local body. Rule 12(2) of CCS(LTC) Rules,1988 read with- DoPT’s O.M. NO. 31011/4/2008-Estt.A dated 23 September, 2008
14.	Whether airfare of children whose full fare is charged by the airlines is reimbursed?	If full fare has been charged by the airlines and paid by the Government servant, the same will be reimbursed.
15.	Can a Govt. servant use the service of travel agents for LTC purpose?	Yes, but it should be limited to M/s Balmer Lawrie and Company and M/s. Ashok Travels and Tours.
16.	What is the definition of family for LTC?	For LTC purpose, family consists of (i) Spouse of the Govt. servant and two surviving unmarried children or Step children. (ii) Married daughters, who have been divorced, abandoned or separated from their husbands and widowed daughters residing with and wholly dependent on the Govt. servant. (iii) Parents and/or step parents residing with and wholly dependent on the Govt. servant. (iv) Unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands and widowed sisters residing with and wholly dependent on the Govt. servant provided their parents are either not alive and are themselves wholly dependent on the Govt. servant. Rule 4 of CCS(LTC) Rules,1988 read with O.M. No. 31011/4/2008- Estt.(A) dated 23.09. 2008.
17.	What are the dependency criteria?	A member of family whose income from all sources, including pension, temporary increase in pension does not exceed Rs.3500 from 01.09.2008 and Dearness relief thereon is deemed to be wholly dependent on the Government servant.
18.	Can parents/children residing at other places avail LTC to visit the Govt. servant at Headquarters and go back?	No, reimbursement of LTC claims being restricted to the entitlement for journey between Headquarters and place of visit, the , amount reimbursable in such cases is nil.O.M. No. 31011/14/86-Estt.(A) dated 07.05.1987

Frequently Asked Questions and Answers on Leave Travel Concession (LTC) matters

Establishment division of Department of Personnel & Training has published an another useful ‘Frequently Asked Questions and Answers’ regarding the Leave Travel Concession (LTC) for Central Government employees.

Department of Personnel & Training Establishment (A-IV)

Frequently Asked Questions and Answers on Leave Travel Concession (LTC) matters

S.No.	Question	Answer
1.	How are the claims of LTC be adjusted in case of delayed submission?	Where advance has been drawn, the claim for reimbursement shall be submitted within one month of the completion of the return journey.  Where no advance has been drawn, the expenditure incurred shall be submitted within three months of the completion of the return journey.  Administrative Ministry/Department concerned can admit the claims in relaxation of the provisions subject to the following time limits without reference to DoPT:  (a) Where no advance is taken, LTC Bill submitted within a period not exceeding six months; and  (b) Where advance has been drawn, claim for reimbursement submitted within a period of three months after the completion of return journey (provided the Govt. servant refunds the entire advance within 45 days after the completion of the return journey. Rule 14 of CCS(LTC) Rules,1988 read with -  O.M. No. 31011/5/2007-Estt.A dated 27th September, 2007
2.	Can a Govt. servant visit NER or N&K on more than one occasion on conversion of Hometown under the relaxation allowed for LTC visits to NER/J&K?	Govt. servant who has availed the benefit of Home Town conversion to NER/J&K in one block (say 2006-2009) can again visit NER/J&K in the new/next block (say 2010- 2013) subject to availability of LTC in a allowed particular block so long as the relaxation is in force.  1. O.M No. 31011/4/2007-Estt.(A) dated 02.05.2008  2. O.M No. 31011/4/2007-EStt.(A) date 23.04. 2010  3. O.M No. 31011/2/2003-EStt.(A) dated 18.06.2010
3 .	Can a Govt. employee avail of air travel to NER/J&K in case of All India LTC if his Home town and the Headquarters are at the same place?	Both NER and J&K scheme of LTC allow relaxation for air travel on All India LTC to all categories of employees to the extent specified in the DOP&T’s O.M 31011/4/2007- Estt.(A) dated 02.05.2008and DOP&T’s O.M 31011/2/2003-Estt.(A) dated 18.06.2010 even if the Hometown and the Headquarters are same.
4.	Whether Govt. servant who has already availed one Home Town LTC in the current block can avail LTC to visit NER?	Yes, he can avail it against All India LTC.
5.	Can a Govt. servant avail the benefit of visiting NER/J&K twice in a particular block of 4 years?	Yes, a Govt. servant can visit NER/J&K by conversion of his Home Town LTC and also by availing All India LTC subject to validity period of the scheme and fulfilling of other conditions.
6.	Can a fresh recruit avail the benefit ofHome Town conversion to NER/J&K?	A fresh recruit Govt. servant can also avail benefit of Home Town conversion to NER/J&K against one of the three occasions of Home Town available to him in each block.
7.	Can fresh recruit avail of conversion ofHome Town to visit NER/J&K under the relaxation allowed for visiting NER/J&K?	Any Govt. employee can avail of the relaxation for visiting NER/J&K and convert one Home Town LTC for such visit in a block of 4 years as long as the relaxations continue.  1. O.M No. 31011/4/2007-EStt.(A) dated 02.05.2008  2. O.M No. 31011/2/2003-EStt.(A) dated 18.06.2010
8.	Can a fresh recruit Govt. servant avail of All India LTC anytime during the 4 year block?	It can be availed only the block and not at random.
9.	Whether Carry over of LTC is allowed to fresh recruits?	Carry over of LTC is not allowed to fresh recruits as they are eligible for every year LTC for the first 8 years of service.
10.	Who is a fresh recruit entitled for LTC every year?	A person who has joined service for the first time is treated as a fresh recruit for the first eight years.  O.M. No. 31011/4/2008-Estt.(A) dated 23.09.2008.
11.	How the LTC entitlements of fresh recruits are regulated in the first eight years?	On completion of one year, the Fresh recruit can be allowed 3 Home Town LTC and 1 All India LTC in each block of Four years in the first 8 years.  O.M. No. 31011/4/2008-Estt.(A) dated 23.09.2008.
12.	Whether Dependent parents of fresh recruits can avail LTC for the journey from Home Town to Headquarters and back?	No, the dependent parents of fresh recruits can not avail LTC for the journey from Home Town to Headquarters and back.
13.	Whether claims for reimbursement can be allowed for road journeys by bus/taxi or other vehicle operated by private operators?	LTC Rules do not permit reimbursement for journey by a private car (owned/borrowed/hired) or a bus/van or other vehicle owned by private operators. LTC facility shall be admissible only in respect of journeys performed in vehicles operated by Govt. or any Corporation in the Public sector run by the Central or State Govt. or a local body. Rule 12(2) of CCS(LTC) Rules,1988 read with-  DoPT’s O.M. NO. 31011/4/2008-Estt.A dated 23 September, 2008
14.	Whether airfare of children whose full fare is charged by the airlines is reimbursed?	If full fare has been charged by the airlines and paid by the Government servant, the same will be reimbursed.
15.	Can a Govt. servant use the service of travel agents for LTC purpose?	Yes, but it should be limited to M/s Balmer Lawrie and Company and M/s. Ashok Travels and Tours.
16.	What is the definition of family for LTC?	For LTC purpose, family consists of  (i) Spouse of the Govt. servant and two surviving unmarried children or Step children.  (ii) Married daughters, who have been divorced, abandoned or separated from their husbands and widowed daughters residing with and wholly dependent on the Govt. servant.  (iii) Parents and/or step parents residing with and wholly dependent on the Govt. servant.  (iv) Unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands and widowed sisters residing with and wholly dependent on the Govt. servant provided their parents are either not alive and are themselves wholly dependent on the Govt. servant.  Rule 4 of CCS(LTC) Rules,1988 read with  O.M. No. 31011/4/2008- Estt.(A) dated 23.09. 2008.
17.	What are the dependency criteria?	A member of family whose income from all sources, including pension, temporary increase in pension does not exceed Rs.3500 from 01.09.2008 and Dearness relief thereon is deemed to be wholly dependent on the Government servant.
18.	Can parents/children residing at other places avail LTC to visit the Govt. servant at Headquarters and go back?	No, reimbursement of LTC claims being restricted to the entitlement for journey between Headquarters and place of visit, the , amount reimbursable in such cases is nil.  O.M. No. 31011/14/86-Estt.(A) dated 07.05.1987

Courtesy : 90paisa.blogspot.com

Leave Travel Concession - FAQ

Whether a Govt Servant completing his first year of service in the Grace Period of LTC Block is eligible for LTC ?

NO . CCS (LTC) Rule 7 specify that any Govt Servant who has put in one year of service on the date of journey in a BLOCK - not during the GRACE period - is entitled to LTC to Home Town or Anywhere in India , even if his total service is less than two years. ( Rule 10 )

Whether a Govt Servant can avail Home Town LTC on THREE occasions in a block of 4 years by surrendering his claim for Anywhere in India LTC ?

NO . LTC to visit Home Town by a Govt Servant with his family members is admissible only on TWO occasions during a block of four years.(Circular dt. 20.10.1997)

Whether reimbursement of entitled class by train against actual journey by Private Airlines is admissible ?

No. Claim for journey by Private Airline is not admissible at all in LTC Rules. NO claim is payable (even admissible train fare) if mode of travel itself is a NON PERMISSIBLE mode of travel. (Clarification (1) of DOPT Circular dt. 31.03.1999)

What is the LTC admissibility for Family residing at HOME Town of the employee and visiting to the HEADQUARTER of the Employee ?

LTC is admissible only for visiting HOMETOWN ( or Any Place in India) of the employee and NOT the HEADQUARTER of employee.(Rule 8/OM dt.11.06.1985)

How the LTC Claim is to be regulated when journey is performed by the shortest route BUT IN DIFFERENT CLASSES OF ACCOMMODATION by train ?

LTC Rule allows reimbursement for expenses of journey under LTC "only on the basis of a point-to-point journey on a through ticket over the shortest direct route". So if route is the shortest direct one,and train travel is in NOT in ENTITLED class, the method of PROPORTIONATE calculation of fare will apply . Actual fares in entitled classes for the direct shortest route shall be admissible.(Rule 13)

How the LTC claim is to be regulated when journey is performed by the LONGER ROUTE and also in DIFFERENT CLASSES OF ACCOMMODATION in train or by DIFFERENT MODE OF TRANSPORT?

LTC Rule allows reimbursement for expenses of journey under LTC "only on the basis of a point-to-point journey on a through ticket over the shortest direct route".The method of proportionate calculation is applicable since journey is performed by Longer Route,in different classes/ by different mode of transport.(Rule 13)

Whether a Govt Servant's wife - completing his first year of marriage in the Grace Period of LTC Block - is eligible for LTC ?

LTC during the GRACE period is admissible only to those who are ENTITLED to avail LTC in that particular block - must have completed one year of entitlement in that block.Since first year of marriage i.e. first year period ,entitling his wife for LTC is completing in Grace period- NOT in the LTC Block Period, LTC is NOT admissible in this case.(Rule 10)

Whether the "Emergency Passage Concession " en route to Home Town is available under LTC Rules to a person posted in N.E.Region?

LTC is only a concession to the employee and not treated as a journey in public interest hence NO special concession like "Emergency Passage Concession for employees posted in NE Region " is available in LTC Rules. 

Whether in case of Travel by non-entitle mode of travel ,reimbursement of entitled class by train against actual journey by Indian Airlines is admissible ?

Yes. LTC claim for journey by non-entitled mode of transport is to be restricted to the rail fare of the entitled class.Entitled class means the fare of the HIGHEST entitled class of accommodation by rail available on the particular route. (GIO(1) below SR 46) 

Who can avail LTC facility for an "ESCORT "?

LTC for an ESCORT is available ONLY to a Handicapped Employee and NOT to any of his/her family member.

Courtesy : http://ltcindia.in/FAQs.aspx

How to reap big benefits from small saving schemes

By Preeti Kulkarni, ET Bureau 

The interest rates of small saving schemes are linked to the yield of government bonds and revised every year. ET gives a ready reckoner of the current rates and features of these schemes.

POST OFFICE MONTHLY INCOME SCHEME

Interest rate offered: 8.4%

Lock-in period: Five years. Premature encashment allowed after one year, with deductions.

Tax benefits: None

Investment limit: Rs 1,500 to Rs 4.5 lakh in a single account and Rs 9 lakh in a joint account.

Pros: Suitable for those looking for a secure monthly income. Senior citizens can park a portion of their investments in this scheme.

Cons: Long lock-in period. Unlike bank FDs, this does not offer senior citizens a preferential rate of interest.



KISAN VIKAS PATRA*

Interest rate offered: 8.7%

Lock-in period: 100 months. Premature withdrawal two and a half years.

Tax benefits: None

Investment limit: Minimim Rs 1,000 and no maximum cap. Investments have to be made in denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000.

Pros: An attractive and secure interest rate. Can be encashed after two and a half years. Transfer of instrument is permitted.

Cons: Interest earned is taxable, eating into post-tax returns. Other more remunerative instruments have an upper hand.



PUBLIC PROVIDENT FUND*

Interest rate offered: 8.7%

Lock-in period: 15 years. Partial withdrawals allowed from the seventh financial year. Loans can be sought from the third financial year.

Tax benefits: Deductions under Sec 80C for investments up to Rs 1.5 lakh.

Investment limit : Rs 500 to Rs 1.5 lakh.

Pros: Attractive, guaranteed and taxfree returns. The instrument is exempt from tax at investment, accumulation and maturity stages (EEE).

Cons: Largely illiquid due to the long lock-in tenure. Will not help meet short-term needs.



10-YEAR NATIONAL SAVINGS CERTIFICATE

Interest rate offered: 8.8%

Lock-in period: 10 years

Tax benefits: Deductions up to Rs 1.5 lakh under Section 80C.

Investment limit: Minimum Rs 100. No maximum limit. Investments have to be made in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000.

Pros: Easy to purchase and understand. Offers assured returns with tax benefits.

Cons: Interest earned is subject to tax on maturity. For senior citizens, not as lucrative as taxsaver bank fixed deposits.



SENIOR CITIZENS SAVINGS SCHEME*

Interest rate offered: 9.3%

Lock-in period: Five years. Premature closure allowed after one year and two years on deduction of 1.5% and 1% respectively of the deposit. Interest is paid out every quarter, offering liquidity during the lock-in period.

Tax benefits: Deduction under Section 80C for investments up to Rs 1.5 lakh.

Investment limit : Rs 1,000 to Rs 15 lakh.

Pros: High, secure returns, with partial liquidity.

Cons: Locking away huge amounts could deprive senior citizens of funds for medical and other emergencies in the interim.



5 YEAR NATIONAL SAVINGS CERTIFICATE

Interest rate offered: 8.5%

Lock-in period: Five years

Tax benefits: Deductions up to Rs 1.5 lakh under Sec 80C.

Investment limit: Minimum Rs 100. No maximum limit. Investments have to be made in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000.

Pros: Easy to purchase and understand. Offers assured returns with tax benefits.

Cons: Interest earned is subject to tax on maturity. For senior citizens, not as lucrative as tax-saver fixed deposits from banks.



SUKANYA SAMRIDDHI YOJANA*

Interest rate offered: 9.2%

Lock-in period: Till the girl child turns 21. Partial withdrawal of up to 50% of the balance (as on last date of the preceding financial year) allowed after the girl turns 18 years old. Premature withdrawal of the entire balance permitted upon marriage of the girl after she turns 18.

Tax benefits: Deduction under Section 80C for investment up to Rs 1.5 lakh.

Investment limit : Rs 1,000 to Rs 1.5 lakh.

Pros: Offers high, tax-free and guaranteed returns. Ideal scheme for parents looking to build a corpus for the education of their girl child under 10.

Cons: Lengthy lock-in period. More illiquid than PPF.



FIVE-YEAR POST OFFICE TIME DEPOSITS#

Interest rate offered: 8.5%

Lock-in period: Five years

Tax benefits: Deduction up to Rs 1.5 lakh under Section 80C.

Investment limit : Minimum Rs 200. No maximum limit. Further investments have to be made in multiples of Rs 200.

Pros: Easy to understand, operate and invest in. Tax concessions.

Cons: Returns earned are taxable. Senior citizens can earn higher returns (9-9.25%) by investing in tax-saver FDs


*Apart from post offices, some banks also facilitate investments in these instruments

# You can also invest in five-year recurring deposits (8.4%) or fixed deposits with shorter tenures of between one to four years (8.4%). However, deposits with these tenures won't entitle you to tax benefits

Source :The Economic Times