New Delhi: Central government has now allowed that employees can travel via Tejas, Vande Bharat, and Humsafar trains under the Leave Travel Concession (LTC), an official order stated. The move comes after the Department of Personnel and Training (DoPT) received several references from different offices/individuals about the admissibility of various premium trains under the LTC.
What does the order mention?
According to an order issued by the DoPT, it stated, “The matter has been examined by this department in consultation with the Department of Expenditure, and it has been decided that apart from existing Rajdhani, Shatabdi and Duronto trains, travel by Tejas Express, Vande Bharat Express & Humsafar Express trains under LTC as per the entitlement of the government employees has now been allowed.”
The eligible Central government employees get reimbursement of tickets for to and fro journeys besides paid leave when they avail of the LTC.
What is LTC?
Leave Travel Concession (LTC) is a tax-exempt allowance that allows employees to travel within India while on leave. It is part of an employee’s salary package.
How does LTC work?
- Employees can use LTC to claim air, train, or road travel expenses.
- You can claim LTC for travel with family members, including parents, siblings, spouses, and children.
- Employees can claim LTC for up to two trips within four years.
- If you don’t use all your LTC in one block, you can carry over the unused amount to the next block year if you make the claim within the first year of the new block.
What’s exempt from tax?
- The exemption is the lesser of the actual travel costs or the cost of an economy-class ticket.
- You can also claim the first-class or deluxe-class fare for the shortest route on a recognised mode of transport.
- If no recognised transport is available, you can claim the equivalent of the first-class AC rail fare for the distance travelled.
Who can claim LTC?
Salaried employees, government employees, and retired employees can claim LTC.
The Indian government has expanded the eligible train options under the Leave Travel Concession (LTC) scheme. Central government employees can now use LTC for travel on Tejas, Vande Bharat, and Humsafar Express trains, in addition to existing options like Rajdhani, Shatabdi, and Duronto. This change follows requests from various government offices and individuals. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
