Leave Encashment Guide

This guide explains how to claim Leave Encashment for Annual Leave during LTC and at discharge, invalidment, or death. Follow these steps to ensure correct processing and avoid rejections.

Key Points for Leave Encashment

Topic	Details
Authority	GoI, MoD letters No. 12647/LTC/MOV C/2970/D(Mov)/08 dated 17 Dec 2008; B/33931/AG/PS-2(b)/1908/D(AG) dated 15 Apr 2010.
Types	LTC: 10 days/year, max 60 days in service. Discharge: Max 300 days.
Process	DO Part-II Orders by unit/Record Office; PAO verifies, credits to bank.

(A) Encashment of Annual Leave on LTC

Aspect	Details
Limits	10 days/year, max 60 days in service.
Procedure	Claim via IAFA 194 (1 Apr 2013–31 Jul 2014); DO Part-II with Annual Leave period (Col. 4), days claimed (SRA), cumulative days (NRA), “LTC” (7a), year (7c), reference DO Part-II (Col. 8); unit certifies compliance.
Payment	Credited to bank after PAO verification.

Reasons for Rejection: Missing IAFA 194, LRA/TJRA mismatch, future date, cancelled reference DO Part-II.

(B) Encashment of Leave on Discharge

Aspect	Details
Limits	Max 300 days accumulated.
Procedure	Unit publishes ACCLVE occurrences; Record Office notifies with discharge/invalidment/death date (Col. 4), reason (7a), accumulated days (7b), entitled days (7c), reference DO Part-II (Col. 8), year-wise details (Col. 9).
Payment	Credited to bank after PAO final settlement.

Checklist for Leave Encashment

Check	Document/Action	Notes
✔️	DO Part-II Order (LTC)	Include leave period, SRA, NRA, “LTC”, year, reference DO Part-II; submit IAFA 194.
✔️	DO Part-II Order (Discharge)	Include ACCLVE, discharge/death date, reason, accumulated/entitled days, reference DO Part-II.
✔️	Certificate (LTC)	Unit certifies compliance with MoD letters.
✔️	Bank Details	Submit NEFT Mandate Form for payment.
✔️	Service Book Entry	Confirm encashment details recorded.
✔️	Ink-Signed Claim	Submit signed claim, countersigned by OC/CO.
✔️	Verification	Check pay slips for encashment amount.

Common Reasons for Rejection

Issue
Missing IAFA 194 or submitted outside 1 Apr 2013–31 Jul 2014 (LTC).
LRA/TJRA days mismatch (LTC).
Future date or cancelled reference DO Part-II (LTC).
Missing ACCLVE occurrences (Discharge).
Incorrect discharge/death date or reason (Discharge).
Exceeding 60-day (LTC) or 300-day (Discharge) limit.
Incorrect bank details or missing service book entry.

Quick Tips

Tip
Ensure DO Part-II Orders are complete for LTC/discharge encashment.
Submit IAFA 194 for LTC encashment (1 Apr 2013–31 Jul 2014).
Verify ACCLVE occurrences for discharge encashment.
Check bank details in NEFT Mandate Form.
Confirm service book entries for encashment.
Keep copies of DO Part-II, IAFA 194, NEFT Mandate Form, pay slips.
Report mismatches/delays to PAO/unit.
Ensure LTC ≤60 days, discharge ≤300 days.