Encashment of Leave salary for LTC

Tagged with: encashment leave, leave travel concession, LTC

Thursday, February 4, 2010

This article is posted in Ask GC category and has 31 Comments so far.

Mr. Dalvi C.G asked

Please clarify whether Leave encashed at the time of availing LTC is to be deducted from the leave account of employee at the same time or not. Also clarify whether separate account of 60 EL encashment is to be maintained?

GC Team’s opinion

While availing Leave Salary encashment for LTC, the leave encashed should be deducted from the EL credit at that time itself along with EL taken for LTC.

But this is not applicable for all cases as LTC can also be availed on CL.

In that case only encashed EL is be deducted.

But this Leave encashment debit should be made separately in red ink. An abstract as hereunder may be maintained in LA it self

	LTC Leave Encashment Account
Date	Availed	Progressive	balance
1/2009	10	10	50
3/2010	8	18	42

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31 Responses to “Encashment of Leave salary for LTC”

Shrikant said on Thursday, February 4, 2010, 10:51

Dear Sir,
i. Whether the EL encashment for LTC can be availed for home town LTC also?

ii. One avails LTC from Dec.30, 2009 to Jan.5,2010 availing EL for 7 days. He has also aviled encashment of EL of 10 days for this LTC. He had 300+15 days of EL at credit as on 30/12/2009. How the EL A/c to be deducted for EL encashment? Whether it is to be deducted from 300+15 days of balance available on 30/12/2009 or after the credit given for Jan.2010? Kindly clarify.

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admin Reply:
April 18th, 2010 at 5:28 pm
i. Yes EL encashment could be availed for home town ltc

ii. After giving credit for the year 2010

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Zeya Alam said on Thursday, February 4, 2010, 12:57

Dear Sir
I have just retired as GM from U.P.R.V.U.N.Limited(A U.P. Govt. undertaking). I will be getting following terminal benefits and want to know from your experts about my Tax liability on these.
1:Leave encashment on accumulated leave Rs:697000/
2:Gratuty:Rs:1000000/
3:Commutation of 40% Pension Rs:1222294/

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admin Reply:
March 7th, 2010 at 6:05 pm
As per existing IT provisions retirement benefits mentioned by you attract no income tax

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SatNair said on Thursday, February 4, 2010, 12:57

GC Team’s opinion is correct.

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Mr. R.N. GUMGAONKAR, LDC, DMC, NAGPUR said on Thursday, February 4, 2010, 18:16

Respected shri Dalvi,

As per rule the availed leave salary encashment is to be deducted from the leave account of employee both LTC and Leave encashment at the same time. Proper entry in red Ink should be made in service book for final payment of Leave encashment after retirement can be made correctly.

While availing LTC on CL also, the leave Salary Encahshment would be deducted form his leave account.

Thanking you.

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Mr. Dalvi C.G. said on Thursday, February 4, 2010, 18:44

Pl clarify 1. whether 60 days EL encashment available for LTC is in addition to 300 days EL encashment payable at the time of retirement 2.whether two separate EL accounts are to be maintained 3.whether 60 days EL encashment is to be given from 300 days EL,maximum quantum encashable on retirement 4.EL encashed prior to 6th cpc is to be subtracted or not at the time of retirement 5. Is this 60 days EL encashment is only for LTC and not to be linked to 300 days EL encashable at the time of retirement.

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salim pathan said on Friday, February 5, 2010, 12:58

While LTC availed on Cl. Encashed EL would be deduct from leave account

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Balkar Singh said on Friday, February 5, 2010, 19:17

Please provide me a policy letter regarding employment of son/daughter in case of employee medically unfit.

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harjinder singh said on Friday, February 5, 2010, 22:20

could anyone please clarify whether encashed leave is to be debited before the commencement of other leave or after expiry of that other leave?

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BIKRAM DEY said on Saturday, February 13, 2010, 15:19

I AM A POSTAL SERVENT. MY FATHER IS ENGAGED IN WEST BENGAL POLICE SERVICE. HE CAN’T GATE ANY LTC FROM THIS SERVICE. AND MY MOTHER IS A HOUSE WIFE. CAN I AVAIL LTC WITH MY FAMILY(i.e. MY FATHER,MOTHER & WIFE)?

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M. Parwez said on Monday, February 15, 2010, 8:52

whether the leave encashment on LTC is taxable or not?. As it is not deductible form overall 300 days the DDOs are resorting to TDS on this encashment as well.

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admin Reply:
February 15th, 2010 at 1:04 pm
Leave encashment on LTC is taxable

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zeya alam said on Monday, March 1, 2010, 20:25

whether leave encashment on RETIREMENT is taxable or not?
I retired on 30.09.2009 from U.P.R.V.U.Nigam Limited(A Government Of Uttar Praadesh Undertaking) and received Rs:697000/= as my leave encashment.
Please reply.

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admin Reply:
March 2nd, 2010 at 6:34 am
it’s not taxable

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c jaya prakash said on Tuesday, March 9, 2010, 16:56

I have availed 10 encashment of earned leave on LTC. i want to know, this amount is taxable under income tax as income from salary. please clarify.

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admin Reply:
March 10th, 2010 at 7:41 pm
yes it’s taxable

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idrishsheth said on Thursday, March 25, 2010, 16:03

Whether the leave encashment in advance is admissible or otherwise.

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admin Reply:
March 26th, 2010 at 9:52 am
Leave encashment during service is allowed when you prefer to avail LTC

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skbajaj said on Thursday, April 1, 2010, 1:09

availed home town ltc for self and daughter in feb 2010. plan to avail same for wife later in the year .On return applied for 10day leave encashment immediately. competent authority Office declined saying request for encashment of EL not recd while proceeding on LTC. Pl clarify if there is any such rule. My home town LTC is still incomplete as wife is still to go later.can I apply for leave encashment at that time if not granted same now

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admin team Reply:
April 4th, 2010 at 9:05 pm
Dear bajaj
There is not specific Rule laid therein. However, As per LTC Rule, you have to give your proposed place of visit and dates etc in advance otherwise LTC will not be allowed. As leave encashment is related to LTC that request should also be made along with LTC proposal and not aftermath. Though HTC for your Wife is allowable , you will not get EL encashment for that, since you have to avail some leave by yourself for availing HTC/LTC . So you miss this block year’s chance. You can get it only in your next block. Plan it perfectly & use your righteous concession.

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diwash Chhetri said on Thursday, April 8, 2010, 7:16

sir, I want to know that if i avail 15 days LTC and also claim for 10 days leave encashment , shall alongwith my 15 days deduction from my EL record , this 10 days encashment availed will also be deducted from EL record ie. If i avail 15 days LTC , shall total 25 days EL will be deducted from my EL record.

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admin team Reply:
April 8th, 2010 at 7:24 am
Dear diwash chhetri
Yes You are right. your EL A/c will be debited 25 days

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anupama said on Monday, April 19, 2010, 14:12

whether Ltc can be claimed during the child care leave

whether leave encashment can be availed when there is only 10 days E.L at credit

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admin Reply:
April 19th, 2010 at 5:41 pm
It may not be possible to claim LTC during child care leave.

If you intend to proceed on LTC using other leave such as casual leave, the leave at credit would be enough for deduction for leave encashment

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zaiapachuau said on Friday, May 28, 2010, 16:19

Whether claim of Leave Encashment on LTC is time bound?

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admin Reply:
May 31st, 2010 at 11:50 am
yes. Claim has to be submitted within 2 months

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George Raju said on Thursday, June 24, 2010, 14:56

Dear sirs,
I have availed NER LTC to Dimapur with family by surrendering Home Town LTC in the Block year 2008-09 My Grade Pay is Rs.4800/- I have traveled from Bhubaneswar to Kolkatta and from Kolkatta to Dimapur by air. While returning, I traveled from Dimapur to Kolkatta by Indian Airlines and from Kolkatta to Chennai by Indigo airlines. From Chennai I traveled to Trivandrum and back to Bhubaneswar by train. No advance was paid to me for the LTC to NER.

The office has reimbursed me air fare from Bhubaneswar – Kolkatta – Dimapur and return journey from Dimapur to Kolkota only. From Kolkatta to Bhubaneswarr, it has reimbursed me train fare by 2AC. When I enquired as to why air fare is not paid to me from Kolkatta to Bhubaneswar, I am informed as follows:

1) that my entire stretch of return journey from Kolkatta – Chennai -Trivandrum and back to Bhubaneswar is taken as one trip partly by air and partly by train.
2) that while returning, I have not landed at Bhubaneswar or terminated my journey at Bhubaneswar. As per Swamy’s publication of LTC rules, reimbursement of claim is to be made as follows: “To home/declared destination and back – In every case, the journey should be to the home/declared destination and back, but it need not necessarily commence from or end at the headquarters of the Government servant either in his own case or in the case of the family. But the assistance admissible will be the amount admissible for the actual distance traveled, limited to the amount that would have been admissible had the journey been performed between the headquarters and the ‘home’ of the Government servant or declared destination “ – Chapter VIII Para 3 of Rule 7, GID(1), of Swamy’s compilation.

Can some one clarify the position please?

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admin Reply:
June 26th, 2010 at 10:12 am
This query has been posted in GConnect Discussion Board. You may get a suitable solution from the members. Check this GConnect page

http://gconnect.in/forums/showthread.php?p=8054#post8054

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SHAIKH AKIL said on Wednesday, July 21, 2010, 10:37

I WANT A FORMAT OF LEAVE ENCASHMENT

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admin Reply:
July 23rd, 2010 at 10:04 pm
Check Admin Forms area of GConnect

http://gconnect.in/gc/service/download-admin-forms.html

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