LTC special cash package scheme: In a big relief to central government employees, the Modi government has extended the deadline for full and final settlement of bills related to LTC special cash package scheme. Now, the bills can be submitted by May 31, 2021. Earlier, the date of submission of bills/claims and settlement was March 31, 2021, which was later extended to April 30, 2021.
While announcing the LTC relief to the central government servants the Ministry of Finance Office Memorandum said, “Queries have been received by this department to extend the date of submission of bills/claims and settlement beyond 30th April 2021. Keeping in view of the situation existing due to Covid-19 pandemic, it has been decided that submission of bills claims may be entertained and settled by Ministries/Departments not later than 31st May 2021.”
What it means for central government employees?
Now, the central government employees can submit their bills by 31st of May 2021. The Department of Expenditure, Ministry of Finance already issued Office Memorandum in this regard.
However, the department of expenditure’s OM in regard to extension of the LTC special cash package scheme made it clear that payment for the purchases should have been made not later than the due date i.e. 31st March 2021. Earlier, the deadline for LTC special cash package scheme was 31st March 2021 which was later extended to 30th April 2021 which now has been extended to 31st May 2021.
What shoud you note?
The government had announced LTC special cash package scheme, also known as LTC Voucher Scheme in 2020 to boost spending after the nation-wide lockdown. Considering difficulty of the central government employees to travel and avail LTC benefit, the Centre center allowed CGS to receive cash via cash voucher scheme in which a central government employee had to submit bills and claims to their concerned department and in return get cash.
LTC cash voucher scheme was announced by the central government in October last year in an attempt to boost consumption during the coronavirus pandemic. Taking an annual vacation was difficult for everyone last year, making it harder for employees to claim leave travel concession (LTC) from their CTC package. The government’s LTC cash voucher scheme was initially announced for central government employees, but was later extended to private-sector employees in December. The scheme makes it easy to claim LTC benefits without actually travelling, but there are quite a few strings attached.
