Sometimes principals / interests or both towards recoveries of LTA are not fully paid by the Government servant during his / her service. To recover the outstanding dues to the Government, retiring gratuity is withheld. On realization of above outstanding dues, retiring gratuity is released.

The Government Servant has to start his recovery towards principal of LTA from the succeeding month of the month of drawal of the advance. Where there occurs any delay towards recovery of principal amount, penal interest may be imposed at a rate prescribed by the loan sanctioning authority.

Recovery of principal of LTA should be started from the succeeding month i.e. from the next month of the month of drawal of the advance.