NEW LEAVE TRAVEL CONCESSSION (LTC) /

HOME TRAVEL CONCESSION (HTC)

SCHEME”

Dinesh Meshram
Dy.General Secretary
SBIOA ( Mumbai Metro & Maharashtra Circle)
Unit - Maharashtra
 eCircular

•Department: P&HRD
•Sl.No.: 3/2023 – 24
•Circular No.: CDO/P&HRD-PM/1/2023 - 24
•Date: Sat 1 Apr 2023

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 EFFECTIVE DATE

“New LTC/HTC Scheme” for the officers

of the Bank. The “New LTC/HTC Scheme”
will replace the existing LTC/HTC Scheme
and shall be effective from 1st April,
2023.

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 OPTIONS
a. Travel by Air/Train Scheme
(For actual Travel)

b. Travel Fare Allowance

(On declaration basis) (T F A)
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 Eligibility
• All permanent officer of the Bank, including officers on probation, are
eligible for LTC/HTC immediately on appointment but they can
actually avail of the same after putting in one year’s service.

• All Permanent Part Time Medical Officers (PPMOs) covered under

Uniform Terms and Conditions of Services (UTCS).

• Dependents – As per definition of family mentioned in SBIOSR for

Leave Travel Concession.

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 Entitled Class / Mode

Grade / Scale Entitled Mode/Class

TEGSS I & II By Air (Business Class)

SMGS IV to TEGS – VII By Air (Economy Class)

MMGS-II & III By Train (2nd Class AC) (Economy

Class by Air if distance is more
than 1,000 km)
JMGS-I By Train (2nd Class AC)

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 Permissible periodicity and distance

During each block of four years, the

officer may travel in one block of
two years to his hometown/place of
domicile (HTC) and in the other
block of two years, to any place in
India (LTC) within overall entitlement
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 Travel by Train
Maximum distance permissible under
‘Travel by Train’ will be 6500 km each
way and the officers may be allowed to
opt for one ‘Break Journey’ within
eligible limit.

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 Entitlement
Entitlement for Leave Travel Concession (LTC) for the
Financial Year 2023-24, effective from 01st April, 2023

Class / Mode Amt. in Rs. (per person)

Under Travel by Air Scheme

a. Business Class 1,98,000/-
b. Economy Class 1,32,000/-
Under Travel by Train Scheme
(with break journey at 3250 km)
a. 1St AC (Peak Fare) 24,300/-
b. 2nd AC (Peak Fare) 14,100/-
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 Under Travel by Air Scheme

Within the overall entitlement, officers can

visit any place in India provided major part of
the claim (50% or more) is for travel by air. In
case the expenditure on air travel is less than
50%, the entitlement will be to the extent of
double the amount actually spent on travel
by air.
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 Entitlement for dependent children
Child’s age % of Officer’s entitlement
Above 12 years 100%
Above 6 years to 12 years 75%
Above 2 years to 6 years 60%
Below 2 years Actual Fare charged
However, in case of travel by train, the entitlement of child
will be the same as the adult train fare irrespective of age.
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 Home Travel Concession (HTC): In a block of 4 years
Grade/Scale If the hometown / place of
domicile is outside the
geographical area of circle where
the officer is posted (% of LTC
entitlement)
If the hometown / place of
domicile is within the geographical
area of circle where the officer is
posted (% of LTC entitlement)

TEGSS-I & II 50% 25%

SMGS IV to TEGS-VII 50% 25%
MMGS- II & III 50% * 25% *
JMGS-I 2nd AC train fare 2nd AC train fare
(actual only) (actual only)

* if distance is more than 1000 km otherwise 2nd AC Train fare (actual only)

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 Incidental Expenses (applicable for both LTC/HTC)

Incidental expenses for meeting actual expenditure incurred

on travel from residence to airport/railway station/ bus stand
and back, expenses on local sightseeing, toll tax, driver charges
etc. will be permitted upto 15% of the total entitlement. The
employee will have to produce bills in support of at least one
third of incidental expenses i.e. 5% of the entitlement. The
remaining 10% of the entitlement may be claimed on
declaration basis and no documentary evidence needs to be
produced in support of the same. However, the amount so
claimed will be treated as income of the officer and tax
thereon will be calculated & recovered as per prevailing IT
Rules. SBIOA Maharashtra 13
 LTC/HTC Advance
LTC/HTC advance may be granted up to a maximum of 90 days
prior to the date of commencement of outward journey under
LTC/HTC.
On the basis of application (on prescribed format), LTC/HTC
Advance can be given by debit to "Suspense Account" and
adjusted on submission/sanction of the bills.
LTC/HTC advance shall be settled within 6 months from the
date of advance, failing which interest @ OD interest may be
recovered.

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Type of Leave / Minimum period
An officer can avail LTC/HTC while on any kind of
leave, other than EOL or while compensatory
Off/Leave earned, without any requirement as to
minimum period of leave to be taken. However,
LTC/HTC cannot be availed on Holiday(s) without
taking any leave.
Leave Encashment
In 4 years of LTC/HTC block, the officer will be
permitted to avail leave encashment of Privilege Leave
(PL) with a maximum of 15 days in each 2 years block
or 30 days in one 4 years block while availing LTC/HTC
or availing Travel Fare Allowance (TFA).
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 Mode of Transport
i. Approve mode of transport for travel under LTC/HTC is by
train or by air. However, employees can travel by other
mode including taxi, Bus, Steamer/Cruise, Pony and
Palanquin within entitlement.

ii. In case of travel by own car, expenditure incurred on petrol

enroute, driver’s charges, parking, toll tax etc. may be
reimbursed within entitlement subject to production of
bills / receipts.
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 Sight Seeing
The term refers to visit to the places of
tourist interest or pilgrimage. There is
no restriction as to the amount and the
number of trips that can be permitted
for local sightseeing. There is no
restriction to confine such visits to the
municipal limits. SBIOA Maharashtra 17
 LTC/HTC Carry forward
Under “New LTC/HTC Scheme”, only HTC will be allowed to be extended
(carry forward) to the next biennial block, subject to a maximum of two
biennial concessions (LTC or HTC) outstanding at any point of time.
However, LTC will not be allowed to carried forward and officials has to
either travel under LTC or avail TFA within LTC Block period.
The carry forward of HTC will be done automatically in system (HRMS)
and no separate permission is required for the same.
The block which is due earlier shall be availed first otherwise it will be
treated as lapsed.
Combination of two sets of HTC/LTC is not permissible under “New
LTC/HTC scheme”.
Officer should avail the LTC/TFA and HTC within stipulated period failing
which it will be treated as lapsed.
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 Availing LTC/HTC after retirement
Where an officer is not able to avail LTC/HTC in the last block of service before superannuation
(which at present is 60 years of age) for any reason, LTC/HTC may be permitted to be carried forward
for four months beyond retirement and the retiree may be allowed to avail of the facility within that
period as per the existing rules relating to the serving officers of the Bank. However, in case two
travel concessions are outstanding as on the date of retirement, only one LTC/HTC shall be allowed
to be carried forward beyond retirement. In exceptional circumstances for genuine reasons the
LTC/HTC may be permitted to carry forward up to six months beyond the date of superannuation.
However, the facility of Travel Fare Allowance shall be available during the service period only.

However, the officer who has already retired before 01st April, 2023 and whose LTC/HTC is currently
in carry forward period beyond the date of retirement shall be governed by the LTC/HTC instructions
as on date of retirement. It means that the provisions of “New Scheme of LTC/HTC” shall be
applicable only to the officers who retire on or after introduction of the new scheme.

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 Convertibility under the Scheme of Travel by Air

i) Under “New LTC/HTC Scheme”, the eligible officers may utilize their entitlement
for travelling longer distance by lower class or shorter distance by higher class.
However, as per Income Tax rules, the tax exemption limit, in all cases, including
those where the entitlement is 'Business Class'; will be limited to the Air
Economy Class fare of the National Carrier (Air India) by the shortest route from
headquarters to the farthest place / destination visited in the Indian territory.

ii) Within the ceiling of entitlement, it will be permissible for an eligible officer to
perform the journey by shorter/longer route, by higher/lower class and/or by
different modes of transport by availing of the apex/concessional/discounted fare.

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 Submission of Bills
i) LTC/HTC bill is required to be submitted, in the prescribed format, within one
month from the date the employee reports for duty or within one month from
completion of inward journey in case of family members availing the facility
separately. If the bills under LTC/HTC could not be claimed within the stipulated
period due to some unforeseen circumstances, it may be extended upto maximum
6-month period, with the approval of one scale above the LTC/HTC sanctioning
authority.
ii) If it is not claimed within stipulated period (including extended period as the case
may be), no reimbursement claim will be entertained thereafter and the said
LTC/HTC block will be forfeited. It is without prejudice to Bank’s right to take
action against the erring officials, as deemed fit under SBIOSR besides recovery
of the advance amount from the salary.
iii) For settlement of bill under travel by air, Travel Agencies / Tour Operators should
invariably be approved by International Air Transport Association (IATA). In case
tour involving travel by other modes, Travel Agencies / Tour Operators should be
a member of the Travel Agents Association of India or similar other body, tourism
department of Government of India or a State Government or other public sector
bodies such as ITDC / IRCTC;
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 Submission of Bills
iv) Travel Agents shall mention their CIN/GSTIN & PAN in the bills/ invoices.
The Travel Agencies should certify the genuineness of the bills/ invoices
issued by them;

v) Officers shall produce proof of transportation/ travel bill in the form of

invoices, photograph of officer along with the vehicle as mentioned in the bill,
as proof etc. Reasonableness of the rates as prevalent for the land transfers/
travel should be ensured;

vi) The officer will have to submit Travel Certificates / GST bills from the
airlines which will be verified by the passing officer before the payment of bill;

vii) Payment to Travel Agencies / Tour Operators be made through account

payee Cheque / DD / RTGS / NEFT/ Internet Banking/ Credit Card. Payments
made to the travel agents in cash (Indian or foreign currency) will not be
eligible for reimbursement even if supported by money receipt, issued by travel
agents. SBIOA Maharashtra 22
 Husband and Wife both are working

i. Where both husband and wife are employed in our Bank: Husband and/or wife, will
not be eligible for the concession more than once in the relative period i.e. during
their respective four-year block period. The officer, claiming LTC/ HTC for spouse
working in the Bank shall also give undertaking from self and spouse that taken
together during their respective block of four years they have not availed the
concession more than once. Page 8 of 12
ii. Where one of them is employed in the Bank and other is elsewhere: An employee
may avail of LTC/HTC for his/her spouse employed elsewhere and dependent family
members irrespective of similar facility being available from the spouse’s employer
provided that reimbursement from both, the spouse’s employers and the Bank, will
not be admissible in respect of the same journey. A declaration in prescribed format
to given by the spouse employed elsewhere, in this respect at the time of availing
LTC/HTC.
iii. Where one of them is employed in the Bank and other is selfemployed: LTC/HTC
facility is available to the officer of the Bank in respect of her/ his self-employed
spouse.
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 Travel Fare Allowance (TFA)
On declaration basis in lieu of actual travel under LTC
The entitlement for officers and dependent family members under TFA will be 75% of the notional LTC
entitlement under the Travel by Air/ Train (actual travel) scheme.

Entitlement under TFA i.e. @ 75% of LTC Entitlement for FY 2023-24

Entitled Mode/Class LTC entitlemen TFA Entitlement

(Amount in Rs.)

By Air (Business Class) 1,98,000/- 1,48,500/-

By Air (Economic Class) 1,32,000/- 99,000/

By Train (2nd AC) 14,100/- 10,575/

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 Travel Fare Allowance (TFA)

Travel Fare Allowance (TFA) is optional to the scheme of reimbursement for

availing LTC (on actual travel) Travel by air/train. An officer can choose to claim
the LTC either under LTC reimbursement Scheme (on actual travel) or TFA.
Encashment of HTC is not permissible under TFA or otherwise.
The officer is not eligible to claim an LFC partly under reimbursement scheme
and partly under TFA for different family members.
An officer preferring to avail under TFA shall claim for himself/herself and
his/her family members only once during currency of the LTC block. That means
claiming of the facility separately for the self and family members will not be
permitted.
Officers who avail of TFA can avail the facility for self and maximum 3 (three)
eligible dependent family members. (Applicable to the officers who avails TFA
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under Travel by Air).
 Travel Fare Allowance (TFA)
The officers availing TFA in lieu of Travel by train, she/he can avail the same
for self and all eligible dependent family members.
Children entitlement under TFA, if travel by air:

Child’s age % of Officer’s TFA entitlement

Above 12 years 100%

Above 6 years to 12 years 75%
Above 2 years to 6 years 60%
Below 2 years 10%

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 Travel Fare Allowance (TFA)
The whole amount claimed under TFA will be treated as income of the officer for the
purpose of Income Tax and such income tax liability will be recoverable upfront from
the official concerned. i.e. TFA shall attract TDS.
A certificate / declaration in prescribed formats shall be obtained along with the
application under TFA (both Train and Air).
The facility of encashment of privilege leaves will also be available while availing the
facility of TFA.
All other terms & conditions of LTC will remain same as applicable under Travel by Air /
Train Scheme
If an officer wishes to avail himself /herself of Travel Fare Allowance (TFA) for his/her
LTC block, there is no need to take any leave for the same.
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 INCOME TAX
i) Under the “New LTC/HTC Scheme” applicable Income Tax as per prevailing IT
Rules will be borne by employees.

ii) As per Income Tax rules, the tax exemption limit, in all cases, including those
where the entitlement is 'Business Class', will be limited to the Economy Class air
fare of the National Carrier (Air India) by the shortest route from headquarters to
the farthest place visited in the Indian territory

iii) As a part of incidental expenses, 10% of the entitlement may be claimed on

declaration basis and no documentary evidence needs to be produced in support of
the same. However, the amount so claimed will be treated as income of the officer
and tax thereon will be recovered from the officer as per his/her applicable IT Slab.

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 INCOME TAX
iv) As per Income Tax rules, tax exemption, for journey other than by
air, is available only to the extent of First-Class AC rail fare by the
shortest route to the place of destination/visit.
v) It is clarified that while the Bank may not scrutinize all the receipts,
bills etc., the onus of preserving and producing the same before the
appropriate authorities, if required, will be with the employees
concerned. The employees will be wholly responsible for any tax
liability on this account if the same arises in future. Income tax related
to LTC/HTC or TFA, if any will be borne by the employee
vi) Any other rule applicable from time to time as per prevailing IT
Rules.
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 Other General Rules
i) An employee should proceed on leave for availing of LTC before the date of expiry
of current/extended block. The actual journey can be undertaken subsequent to the
date of expiry of the block but such inward and outward journeys should be
completed during the same spell of leave.
ii) Retracing of journeys (re-visits to the same places) is permissible within the
prescribed ceiling of entitlement.
iii) Journey under LTC should commence from headquarters and ordinarily on return
to it, the journey is deemed as completed. However, employees and/or family
members are allowed 7 days’ time for continuing the journey under LTC after their
return to headquarters provided the continued journeys are performed during the
same spell of leave. The officers are also allowed to avail of LTC in respect of their
eligible dependent parents even if they are not ordinarily staying with them or in
the same city or its suburbs.
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 Other General Rules
iv) Officer and his/her family members can travel separately. But the outward and
return journey of the family members should be completed within six months from
the date of commencement of the outward/return journey of the officer. However,
availing TFA for officer and family members separately is not permissible. It may
also be noted that once the journey started under LTC/HTC by any of the family
member or official, it should be completed within 6 months from the date of return
of the journey by all family members and officials and beyond that it will be treated
as lapsed.
v) An officer's family members who are staying at a place other than the
headquarters of the officer for the purpose of education of children can avail of
LTC/HTC for visit to place of domicile or any other place in India, even without
touching headquarters of the officer. Eligible family members of officers can also
undertake journeys by Air and the claim will be settled as per the entitlement
arrived under the Scheme.
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 Other General Rules
vi) Claim in respect of family members may be admitted without insisting on
completion of the return journey to headquarters or place of ordinary residence. In
such cases the actual amount spent on the journey performed can be reimbursed
within the overall individual entitlement. Accordingly, LTC claims involving only one-
way (outward or inward) journey may be settled to the extent of full entitlement of
the individual dependent member of family.
vii) The officer can visit any place in India through circuitous route within overall
entitlement without mention of farthest designated point. However, the official has to
mention the designated destination, anywhere in India before the start of LTC Journey.

viii) Under “New LTC/HTC Scheme” an officer while availing LTC, may travel anywhere in
India (Including place of domicile) within overall entitlement.
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 Other General Rules
ix) Encashment of Leave under “New LTC/HTC scheme” will be permissible as per
existing instructions.

x) Encashment of HTC is not permissible under TFA or otherwise.

xi) If the officer travels partly by air and partly by other modes of transport viz.
rail/road etc., reimbursement will be made for the total amount spent within the limit
of notional entitlement.
xii) LTC/HTC journey under Travel by Air / Train which involves foreign / overseas
travel is not permitted.

xiii) Reimbursement under LTC/HTC is meant for travel expenses or travel related
expenses viz: toll tax, parking etc. only, therefore expenses on hotel, food etc. are not
reimbursable.
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 Other General Rules
xiv) Under “New LTC/HTC Scheme”, only HTC will be allowed for extension (carry
forward) to the next biennial block. However, the existing LTC block which is currently
in carry forward period will be available till expiry of extended period, subject to a
maximum of two biennial concessions (LTC or HTC) outstanding at any point of time.
xv) The officers, as special case’ whose LTC Block Period (original block period) is
expiring during April to June 2023 may avail the LTC/TFA under “New LTC Scheme” upto
30th June 2023 as one time measure. Thereafter no further extension will be
permitted under any circumstances, and it will be treated as lapsed.
xvi) If an officer is eligible to travel by air but wishes to avail his/her LTC/HTC by the
mode/s other than air (Train/Road/Steamer etc.) only, then his /her entitlement would
be calculated as per Travel by Train Scheme (as per 1st AC Train Fare)
xvii) The New LTC/HTC Scheme is applicable to officer cadre only. Award staff shall
continue to be guided by existing LTC scheme.
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THANK YOU

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