LTC cash voucher calculation for without leave encashment – Example with Calculator
The Leave Travel Concession (LTC) Cash Benefit Voucher Scheme is a little bit confusing on the calculation with or without encashment.
As per the recent clarification issued by the Department of Expenditure on 25 November 2022, the lesser amount between actual expenditure and notional fare only will be taken for the account of the full cash benefit.
The below table describes the full cash benefit for all categories.
|Category||2 Members||Full Cash Benefit|
|Category||3 Members||Full Cash Benefit|
|Category||4 Members||Full Cash Benefit|
|Category||5 Members||Full Cash Benefit|
|Category||6 Members||Full Cash Benefit|
|Category||7 Members||Full Cash Benefit|
|Category||8 Members||Full Cash Benefit|
|Category||9 Members||Full Cash Benefit|
LTC Cash Voucher Calculation Formula
LTC Cash Benefit = Amount Spend x Deemed LTC Fare / Amount to be Spent for Full Cash Benefit
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 (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 train fare (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 24,000/72,000) = 16,000].