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Friday, April 28, 2017

Flexi-fare of Rajdhani, Shatabdi to be admissible in LTC, but…

YES, the flexi-fare, also called dynamic fare, introduced by the Indian Railways in September last year, is admissible in Leave Travel Concession (LTC) journeys too, but the dynamic fare component will not be admissible in cases where a non-entitled government servant travels by air and claims reimbursement for the entitled class of…
Rajdhani, Shatabdi or Duronto trains. In that case, such government servants will get reimbursement of fare after deducting the dynamic fare component.
The confusion over the admissibility of flex-fare cropped up after the Railway Board in circular no. 46 of 2016 dated September 7, 2016 introduced a flexi-fare system in Rajdhani, Shatabdi and Duronto trains, where the base fares will increase by 10% with every 10% of berths sold subject to a prescribed ceiling limit. In this regard, clarifications were sought by various employees on the issue of admissibility of flexi-fare while booking the tickets of these trains for the purpose of LTC.
The matter was then examined in consultation with department of expenditure, ministry of finance after which it was decided that flexi fare (also called dynamic fare) applicable in Rajdhani, Shatabdi and Duronto trains shall be admissible for the journeys undertaken by employees for the LTC purpose. But it was also decided that dynamic fare component won’t be admissible in cases where a non-entitled government servant travels by air and claims reimbursement for the entitled class of Rajdhani, Shatabdi or Duronto train. 
The new LTC rule will be applicable retrospectively with effect from September, 2016, i.e. the date from which flexi-fare system was introduced by the Railways.

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