Centre Clears Air On Special Cash Package In Lieu Of LTC For Govt Employees; FAQs Answered

Bhubaneswar: The Ministry of Communications has issued a circular to clarify queries received in respect of Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government employees during the block period 2018-21.

Earlier, the Finance Department had released three sets of Frequently Asked Questions (FAQs) in the month of October and November last year.

Now another set of FAQs have been clarified through a special circular issued recently.

Here’s the latest announcement:

Query 1. Whether the full and final settlement of the bills pertaining to LTC Cash Scheme is also to be ensured by 31^st March 2021, without any scope of spill over to the next financial year?

Reply: As far as possible, the claims should be made and settled well before March 31, 2021. Ministries/ departments may consider settlement of only those claims/ purchases made on or before 31^st March 2021 beyond the due date. (March 31, 2021)

Query 2. Whether payment detail of digital instrument used for making payment against this scheme is to be furnished by employee, along with the claim?

Reply: It is clarified that it is for the competent authority of concerned department/ PAO to decide on additional document for checking the veracity of the claim.

Query 3. Is the scheme admissible if payment is made digitally through friend, relative or any other person?

Reply: It is already been clarified in point 12 of the FAQ issued vide OM dated 20.10.2020 that for digital payment an employee can use credit card of himself/herself, spouse or any family member.

Query 4. For newly recruited officials having three Hometown LTC and one all India LTC, can they avail Special Cash Package for year 2020 in 2021 (upto 31.03 2021) if item is purchased after 31.03.2020 but before 31.03.2021, that is without prior intimation to office?

Reply: A newly recruited employee, whose LTC expires in December 2020 which remains unutilised, may be allowed to claim the cash package in lieu of that LTC till March 2021.

Query 4. Portion of the payment was made in cash as against digital payment for the entire transaction. Whether this will be eligible under the Scheme?

Reply: The portion of digital payment may be allowed to be reimbursed subject to other conditions in the O.M dated 12.10.2020.