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India is known as Asia’s third-largest country economically. Recently the Indian central government has announced an incentive for central government employees.Finance minister, Mrs.Nirmala Sitaraman called this scheme as part of the latest measure to boost demand. As per the plan of this portal, employees will get travel allowance in cash.Mrs. Sitaraman expected the cost of this scheme to 7500 crores for the central Government employee and public sector units.
During the global pandemic,many private-sector employees lost their job and faced severe problems in their life at a time. For cash crunch, small and medium business entities and owners struggle in every aspect. The government tax revenue department has been fallen there in the recent past. On the other hand, the central government employees will purchase goods or services through this scheme. They will able to do any work instead of giving leave tax concession /leave tax allowances.
LTC Cash Voucher Scheme
In this article, we are going to update you regarding the LTC cash voucher scheme. In this peculiar scenario, the government introduced a new prakalpa named the LTC cash voucher scheme so that the central government and PSUs will pay to the central government employees out of the total amount of LTC.The government on Monday announced that Central Government employees will be provided tax benefits on LTC component without them having to actually travel.
Overview Of LTC Cash Voucher Scheme
|Name||LTC Cash Voucher Scheme 2020|
|Launched by||Finance minister Nirmala sitharaman|
|Objective||Providing cash vouchers for travelling and buying items|
|Beneficiary||Central Government employees|
If employees fill the following conditions, they will be given LTC fare and leave encashment
- Employees can avail of a 6000/ per person round trip for any class of rail journey.
- The money should be sent on goods or services before March 31, 2021.
- Purchased items shall be carried at GST rates.
- Such purchases will be from service providers through the digital medium.
- The employee will acquire a voucher dictating the GST number and the amount of GST paid.
- On the other hand, an employee can spend money that will be a time leave encashment amount for purchasing non-food items.
what is ltc cash voucher Eligibility criteria
- All central government employees and PSU employees will get benefit from this scheme.
- Off late finance minister, Mrs. Nirmala Sitaraman requested all state government and public sector companies to implement this scheme for their employees. It will be beneficial for them.
Should you choose for it
- This prakalpa is optional. Employees can opt for regular LTC for consecutive years.
- They are eligible to get the maximum amount of LTC.
- As an employee can travel with his or her family members, they will able to avail exemption under LTC/LTA.
- During this coronavirus pandemic, they have a scope to claim LTC under this new scheme.
- It will be available before March 31, 2021.
- An individuals who are having LTC/LTA from their respective job, tax savings would happen for this.
- Under the LTC cash voucher scheme, if employees show interest in avail benefits, spending money three times as LTA, its equivalent to the leave encashment.
ltc voucher scheme Tax benefits:
TDS is applicable on the leave encashment amount that includes cash reimbursement of LTC fare.
According to existing provisions, travel allowance will be allowed for the employees. TDS is not apt on the amount of LTC fare.