Who are eligible for LTC cash voucher scheme?
To avail of the benefit under this scheme, employees are required to submit bills for purchases made between 12 October and 31 March. The amount required to be spent is equivalent to three 3 times the deemed LTC fare. Bills of goods and services with GST of ₹12% or above can be claimed under the scheme.
How central government employees can avail benefit under LTC cash voucher scheme?
By opting for this scheme, government employees can purchase goods and services in lieu of the tax-exempt portion of the Leave Travel Concession/Leave Travel Allowance (LTA/LTC). He/she can claim tax-exemption on the travel fare encashed if the amount is spent by satisfying specified conditions.
Can I claim LTC in ITR?
It is the responsibility of the employer to deduct appropriate amount of tax while paying the salary to the employee. As you have already incurred the eligible expenditure to claim the exemption of LTC, it is open to you to claim the LTC as exempt while filing your ITR and claim refund of excess tax deducted.
How do LTC vouchers work?
The LTC cash voucher scheme is a new initiative by the Indian Government to incentivise consumption. In this scheme, the employees will receive an equivalent sum of their eligible LTC fare as a cash payout that is exempt from tax. How much every employee receives is based on their individual allowed LTA limit.
What is cash voucher scheme?
The scheme allows government employees to claim tax benefits through the purchase of goods and services in lieu of LTC for travel. Under the scheme, the central government employees can claim cash equivalent of the LTC amount, comprising leave encashment and fare, through reimbursement if they opt for it.
What is LTC voucher?
To boost consumption by allowing employees to claim tax benefits against bills of goods and services purchased instead of travel expenses, the government announced the leave travel concession (LTC) cash voucher scheme in October. Under the scheme, March 31 is the last date for claiming the benefit.
What is the new rule of LTC?
To claim the benefit under the scheme, an individual is required to fulfil the following conditions: i) Spend three times the amount of deemed LTC fare on the purchase of goods/services attracting GST of 12% or more; ii) Purchases must be made during the period between October 12, 2020 and March 31, 2021.
How is LTC voucher calculated?
How to calculate LTC Cash Voucher amount?
- Leave encashment (1,38,500 x 1.17) x10/30 = Rs.
- Fare Value: Rs.
- Total Value: = Rs.
- Amount to be spent for full cash benefit = Rs.
- (a) Share of Leave Encashment in total = 54,015 X 100 / 2,94,015 = 18%
- (b) Share of Fare in total = 80,000 X 100 / 2,94,015 = 27%
Can I claim LTC cash voucher?
Normally, taxpayers are able to claim tax benefit on LTA for a vacation that has been taken anywhere within India. To help salaried taxpayers avoid this situation, the government announced an LTA cash voucher scheme. This scheme has been notified on May 5, 2021.
How do I claim my LTC in 2020?
What is LTC eligibility?
Any employee with one year of continuous service on the date of journey performed by him/his family is eligible. Employees whose spouses are working in Indian Railways/National Airlines are not eligible for LTC.
What is the new rule for LTC?
“Under the new scheme, LTC option will be exercised for the block of 2018-2021. Taxpayers must spend the specified sum on goods or services with a GST rate of 12% or more. Payment for such goods and services must be made via electronic mode only. This expenditure must be made between 12 October 2020 till 31 March 2021.
