7th Pay Commission Leave Travel Concession Rules(LTC)

There are changes to the Leave Travel Concession that Central Government employees receive for travel to their hometown or other parts of the country. There are new rules on the air travel entitlement for level 6 and 8 officers of the Pay Matrix.

Leave Travel Concession (LTC) is granted to Central Government employees for travel to various parts of the country and home as well. The number of home travel visits allowed are two. This is made available every four years. One of the hometown visits can be substituted with an “All India visit”, if needed. LTC is not available for employees whose spouses work in the Indian Railways.

Demand for changes to benefits

There have been several demands to increase the number of times LTC can be availed, particularly for the “All India” visits. There are requests to extend the LTC to foreign countries as well.

Employees working on islands have raised requests to split the hometown LTC, so that it would be possible to visit families once a year and vice versa. Officers working in Sashastra Seema Bal (SSB) have requested for Additional LTC such as that offered to Central Armed Police Forces (CAPFs).

Railway employees and officers whose spouses are railway employees have indicated that there are several places that are not connected by rail and visits to these places cannot be scheduled due to the non-availability of LTC. Hence, it was requested to allow the necessary changes to mitigate this issue.

There were requests to split the hometown LTC for employees posted in Ladakh, North East, and Island territories such as Andaman, Nicobar, and Lakshadweep. This would help employees in meeting their families more often.

Demands were also raised for defence forces placed at high altitude, field, and CI Ops regions to be granted an additional free railway warrant. This was also requested to be extended to CAPF personnel and Indian Coast Guards.

Other recommendations for the benefit of Railway employees are as follows

  • Railway employees to be granted “All India” LTC once in four years; hometown LTC will not be applicable.
  • In order to procure the LTC, all passes for the ongoing year will have to be surrendered.
  • If the employee has already received a pass, then LTC will not be provided for that year.
  • If both spouses are Railway employees, either of them will have to surrender the pass.
  • The allowance follows the calendar year, not the financial year.

Air travel rules for Central Government employees

The Leave Travel Concession has been increased for employees over the years. There are still some areas wherein there could be further relaxations. These are as follows:

  • Permission for journey by air to and from the North Eastern Region, Jammu and Kashmir, Ladakh, and Andaman & Nicobar Islands for all employees.
  • Permission for employees posted in North Eastern states for travel within that region.
  • Increase in the LTC periodicity once in 2 years.
  • Allow an employee to tour outside the country once in his/her lifetime under the provisions of LTC.

7th CPC travel entitlement on LTC - new rules

According to an Office Memorandum (O.M.) from the Ministry of Finance dated 19 September 2017, the travel entitlements for government employees for LTC would remain the same as TA entitlements. The only exception would be in the air travel entitlement for officers between Level 6 and Level 8 of the Pay Matrix. The air travel entitlement for these employees would be allowed for Travelling Allowance only and not for LTC.

The following conditions are also to be noted:

  • There will be no daily allowance for travel through LTC.
  • All incidental expenses incurred on local journeys would not be reimbursed.
  • Reimbursement under LTC is allowed only for journeys that are performed in government vehicles or Corporation vehicles in the public sector.
  • If the journey undertaken is between places that are not connected through public transport, the employee will be allowed reimbursement according to his/her entitlement for journey on transfers. The maximum limit for the same will, however, be 100 km covered by the private transport vehicle. The employee will have to self-certify the claim and submit it. All expenses beyond the upper limit will be borne by the employee.
  • Travel through Premium, Premium Tatkal, or Suvidha trains will be allowed under LTC. The reimbursement of Tatkal or Premium Tatkal charges are also provided for the LTC purpose.
  • Flexi fare applicable on Shatabdi, Rajdhani, or Duronto trains will be allowed if the travel is performed by these trains on LTC. This component of dynamic fare will not be applicable if a non-entitled government employee travels by air and raises a claim subsequently.
  • The rules in the O.M. will be effective from 1 July 2017.

News about 7th Pay Commission LTC Rules

  • Union Budget 2021 – Proposal for exemption for LTC cash scheme

    The Union Budget for 2021-22 was announced by the Finance Minister Nirmala Sitharaman on 1 February 2021. In the latest budget, the FM proposed to offer tax exemption to cash allowance against the Leave Travel Concession or the LTC Scheme.

    The scheme was first announced last year for the individuals who have not been able to claim their LTC tax benefit owing to the COVID-19 pandemic. Although the exemption on the LTC Scheme was initially announced for the government employees only, later the benefit was extended to the non-government employees as well.

    9 February 2021

  • Private sector, state govt, PSU employees eligible for I-T exemption under LTC cash voucher scheme

    The IT exemption under the LTC cash voucher scheme has been extended by the Income Tax Department for the employees of private sector, state government, and PSUs.

    In a statement made by The Central Board of Direct Taxes (CBDT), the payment of cash allowance subject to a minimum amount of Rs.36,000 per individual will be allowed as leave travel concession (LTC) for each person who is an employee of a state government, private, or a PSU body.

    As per the conditions by CBDT, a person in order to avail tax exemption is required to spend three times the value of LTC fare on purchasing of goods or items where the GST charged is 12% and more during the period 12 October 2020 to 31 March 2021.

    30 October 2020

  • The Central government extends the LTC for government employees for 2 years

    The central government has extended the LTC for government employees for the next two years. It has been extended as a Diwali gift from the centre. As for the benefits of the scheme, the central government employees can now apply for LTC for visiting Andaman and Nicobar, Jammu and Kashmir, and the North East till 2022.

    The government has declared that it has decided to extend the benefits of the LTC plan for the next 2 years as most of the central government employees could not enjoy the benefits of this facility going to the COVID-19 pandemic. as per the terms of the LTC, the government allows the central government employees to avail the benefits once every three years. under this scheme the government bears a number of expenses during the travel period.

    13 October 2020

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