LTC Cash Voucher Calculation Formula

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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
6,000 12,000 36,000
20,000 40,000 1,20,000
36,000 72,000 2,16,000
Category 3 Members Full Cash Benefit
6,000 18,000 54,000
20,000 60,000 180,000
36,000 108,000 324,000
Category 4 Members Full Cash Benefit
6,000 24,000 72,000
20,000 80,000 240,000
36,000 144,000 432,000
Category 5 Members Full Cash Benefit
6,000 30,000 90,000
20,000 100,000 300,000
36,000 180,000 540,000
Category 6 Members Full Cash Benefit
6,000 36,000 108,000
20,000 120,000 360,000
36,000 216,000 648,000
Category 7 Members Full Cash Benefit
6,000 42,000 126,000
20,000 140,000 420,000
36,000 252,000 756,000
Category 8 Members Full Cash Benefit
6,000 48,000 144,000
36,000 288,000 864,000
Category 9 Members Full Cash Benefit
6,000 54,000 162,000
20,000 180,000 540,000
36,000 324,000 972,000
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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.

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[(48,000 x 24,000/72,000) = 16,000].

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