Tag Archives: LTC

The central government has issued new guidelines for the Leave Travel Concession (LTC) availed by employees, which will now include air tickets. The Centre in a missive sent to all central ministries and departments said that the Department of Expenditure’s circular from June regarding air travel on government duty will also be applicable for air travel for LTC. The circular stated that air tickets to be availed under LTC shall be only bought from three Authorised Travel Agents (ATAs), which are Balmer Lawrie & Company Limited, Ashok Travels and Tours and Indian Railways Catering and Tourism Corporation. LTC is an allowance given to employees for meeting travel expenses when the employee is on leave from work. The same is exempted from tax under the Income Tax Act.

FM Nirmala Sitharaman made a slew of announcements to stimulate consumer spending and capital expenditure, including a special LTC (Leave Travel Concession) cash voucher. She said LTC funds could be used to spend on goods and items in the 12% GST category. However, FAITH and TAAI expressed disappointment stating that LTC funds of government employees will now be redirected to buy consumer goods.

Sharing her thoughts on the changes made by the FM on LTC, Jyoti Mayal, President of TAAI, said, “The Finance Minister in her stimulus speech has announced that government officials can use their LTC funds to buy consumer goods for the festive season. The tourism industry instead of being bailed out is now deprived of the LTC fund. Our industry is dying and our employees are losing jobs in every avenue but the Prime Minister has forgotten of our existence – the backbone of India.”