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prashantha
03-06-2011, 02:04 PM
Hello Gconnect friends

I am a new entrant. I had sent a query on 18th May to Gconnect discussion Board. Probably my account is not yet activated. I repeat my query. Can one take the benefit of LTC along with 10 days encashment , for journey undertaken by private vehicle.?

I elaborate. In the extended block, 2008-09-10, my colleagues availed LTC on 31st Dec'10. As train & air Tickets were not available,being peak season, they travelled by car. LTC reimbursement was not admissible as they travelled by private car. Now accts. wants to recover 10 days encashment, which is really un-fair. Are they right, coz, the block is already forfeited & as extended time is over, the block has lapsed. They cannot avail that block & now they fear loosing the encashment also.
( Some of them are in the Group "C' & "D" level & have availed LTC the first time to avail the benefit of encashment ).

Accounts is also insisting for evidence of reaching the place of visit (Pune) Now, it is too late for them to bring documentary proof of having reached the destination. One of them brought doctors prescription which was not accepted by our Accts dept. One of them had already mentioned in the LTC application that he is travelling by his own car, so he will not claim reimbursement. ( In such a case why is documentary evidence insisted on) ?

I would really appreciate if my question is forwarded in the Gconnect discussion board, as I am dealing with LTC & need an answer asap.

Please reply at the earliest.

Regards,
Mrs. Prashantha Karkera
Superintendent
SAMEER, Mumbai-76
[email protected]

Victor
03-06-2011, 02:21 PM
Availing LTC by private vehicle is NOT permissible as per LTC Rules. Relaxation is permissible in physically handicapped cases only. Kindly refer to OM dated 28/10/2009 in this regard (http://persmin.gov.in/WriteReadData/CircularPortal/D2/D02est/31011_3_2009-Estt(A)I.pdf).

Encashment of 10 days EL is permissible while availing LTC. Since LTC has been disallowed in this case, the question of encashment of 10 days EL does not arise.

Your Accounts is right in ordering recoveries.

Victor

prashantha
06-06-2011, 12:37 PM
Thanks Victor for your prompt reply. However, I wud like to bring to your notice that in this particular cases the claimants did not draw any LTC advance. Only encashment was given in advance after filling the LTC form. As Encashment is taxable they have already paid tax on it also. . You mean to say that both encashment & tax paid should be recovered.

awaiting your reply.
pnk

Victor
06-06-2011, 02:26 PM
Thanks Victor for your prompt reply. However, I wud like to bring to your notice that in this particular cases the claimants did not draw any LTC advance. Only encashment was given in advance after filling the LTC form. As Encashment is taxable they have already paid tax on it also. . You mean to say that both encashment & tax paid should be recovered.

awaiting your reply.
pnk

The EL encashment is required to be surrendered. Accordingly, the income of the current year will get reduced resulting in tax relief.

Victor

prashantha
06-06-2011, 03:51 PM
Thanks. But in one case the individual said he had performed the journey , but misplaced the train tickets. Here encashment was not recovered, only he was denied LTC reimbursement. Dont u see a similarity in the cases. In both cases the obvious intention was to encash 10 days. I feel as they have claimed to performed the journey they r thus entitled to leave encashment. , (albeit different means of transport.) They can be denied only the fare component of tavel, but does it mean they loose their eligibility for encash also. What is your take ?

pnk

Victor
06-06-2011, 05:07 PM
Thanks. But in one case the individual said he had performed the journey , but misplaced the train tickets. Here encashment was not recovered, only he was denied LTC reimbursement. Dont u see a similarity in the cases. In both cases the obvious intention was to encash 10 days. I feel as they have claimed to performed the journey they r thus entitled to leave encashment. , (albeit different means of transport.) They can be denied only the fare component of tavel, but does it mean they loose their eligibility for encash also. What is your take ?

pnk

If LTC has been granted then EL encashment would be admissible.

However, if NO reimbursement has been granted in a case due to non production of tickets, then what "concession" has the employee received on account of LTC. Leave Travel "Concession" and EL encashment are two separate issues and have to be separately claimed although they are interlinked. If the Leave Travel "Concession" has been denied then it would not be appropriate to say that the employee has availed LTC and hence is eligible for EL encashment.

Victor



Victor

RKPATHAK
07-06-2011, 09:47 AM
You are not entitled to leave encashment in this case

prashantha
08-06-2011, 03:48 PM
Thanks Mr. Pathak, for the reply
pnk

prashantha
08-06-2011, 03:50 PM
I'm almost convinced. Thanks for your time & reply.
pnk