LTC Cash Voucher Scheme
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LTC Cash Voucher Scheme

Finance minister, Nirmala Sitharaman, made a declaration on October 12, 2020, of LTC cash voucher conspire for the focal government representatives. The Income Tax Department, through an official statement, gave on October 29, 2020, then, at that point, broadened the advantages of the LTC Cash Voucher Scheme to non-focal government representatives too, i.e., those utilized in the confidential area, public area units, and the state government. The Leave Travel Concession (LTC) cash Voucher plot was told by the public authority in Budget 2021.

The objective of LTC Cash Voucher Scheme
This plan was reported to support buyer interest and to give tax reduction to people who can’t guarantee the standard LTC tax break because of Covid-related travel limitations. The LTC Cash Voucher conspire intends to give other consumption choices to the representatives to profit from the advantages. It would involve charging reserve funds to the people who are getting LTA or LTC from their separate bosses. The workers have the choice to get a money comparable advantage of LTC passage and related leave encashment without going under the LTC conspire.

Who are Eligible?
The LTC cash voucher plan will be accessible to focal government and PSU representatives. In any case, the money serve stretched out this plan to non-focal government workers also, i.e., those utilized in the confidential area, public area units, and the state government.

Conditions to guarantee benefit under the Scheme
To guarantee the advantage under the LTC cash voucher plot, an individual is expected to satisfy the accompanying circumstances:

  • The sum both by virtue of leave encashment and passage will be permissible on the off chance that the worker spends:
    • a sum equivalent to the worth of leave encashment and
    • a sum multiple times of what might be compared to considered passage
    • on the acquisition of merchandise/administrations drawing in GST of 12% or more,
  • Buys should be made during the period between October 12, 2020, and March 31, 2021.
  • The installment for the products/administrations is compulsorily expected to be made through a computerized mode including check, UPI, and so on.
  • Solicitations should be outfitted to a business containing subtleties of the seller, GST number, and GST sum paid. Solicitations for the sake of relatives can likewise be submitted.

You will actually want to guarantee the advantages under the plan provided that you satisfy every one of the previously mentioned conditions.

Considered LTC Fare
The considered LTC admission for this design is as per the following:

  • Representatives who are qualified for business class airfare: ₹36,000 (per individual Round Trip)
  • Workers who are qualified for economy class airfare: ₹20,000 (per individual Round Trip)
  • Further, the workers who are qualified for Rail of any class: ₹6000 (per individual Round Trip)