7th Pay Commission Latest: There is good news for central government employees! The central government has eased the Leave Travel Concession (LTC) claim settlement rules for its employees.  

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The government has extended the date to file the LTC allowance claim. The Department of Expenditure at the Ministry of Finance has issued an office memorandum to clarify the settlement of bills pertaining to the LTC Special cash package scheme beyond May 31, 2021.

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The Finance Ministry in its notification directed central government departments and ministries to consider claims of LTC settlement beyond the due date.  

The office memorandum reads: “The undersigned is directed to refer to this department’s OM of dated May 07, 2021, clarifying that submission of bills/ claims with regards to LTC scheme may be entertained and settled by Ministries/ Departments not later than May 31, 2021.” 

Generally, the LTC claim settlements are done by end of every financial year, which is March 31. But due to the second wave of the Covid-19 pandemic, the central government extended the last date for settlement of the LTC claim till May 31, 2021. 

The office memorandum issued by the Finance Ministry also mentioned: “Representations have been received in this Department to extend the date for settlement of bills/claims beyond 31.05.2021 in view of the situation existing due to COVID-19 and difficulties being faced in settling the claims/bills. It has been decided that Ministries/ Departments may consider the settlement of those claims/ purchases made on or before 31.03.2021 beyond the due date i.e. 31.05.2021." 

Meanwhile, the government also extended the time limit for submission of Travelling Allowance (TA) claims from 60 days to 180 days last month. This decision was taken before the hike of the Dearness Allowance (DA) and the Dearness Relief (DR) for central government employees and pensioners. These orders will be effective from the date of issue of the order, which is June 15, 2021. In the Office Memorandum, the undersigned is directed to refer to this Department's 0M dated March 13, 2018, wherein the time limit for submission of claims for TA on Tour/ Transfer/ Training/ Journey on retirement was changed from 1 year to 60 days, succeeding the date of completion of the journey. 

It also mentioned that several references have been received in the Department regarding extension of time-limit for submission of TA claims in journeys performed by retired employees and their families for going home town/place of settlement after retirement as difficulties are being faced by the retired government officials while claiming reimbursement of TA on retirement within a period of 60 days of completion of their journey.