Font Size . Comment. Under the LTC cash voucher scheme, the government employees can opt to receive cash amounting to leave encashment plus three times ticket fare to … LTC cash voucher calculation for without leave encashment – Example with Calculator. "The LTC Cash Voucher Scheme introduced in October 2020 to boost consumer spending is now ratified as part of the Income-tax Act. Whether the individual employee is required to take leave to avail this LTC- Cash Voucher Scheme? Print. Example (2) (without Leave Encashment) LTC Cash Voucher Scheme FAQ No 1. As an illustration, let us … LTC Cash Voucher Scheme 2021. Consultant pictureLTC Money Voucher Scheme for Central Authorities Staff: In an Workplace Memorandum, the Division of LTC Scheme: The central government in Budget 2021 had notified the Leave Travel Concession (LTC) cash Voucher scheme. Synopsis. Generated Voucher Number which is also a reference for Scan Image Upload Process To control this situation, the government decided to stimulate consumer spending and announced two incentives. Share. The scheme facilitates the employees to claim cash in lieu of such LTC/ LTA with tax exemptions, even without actual travel. Initially, the scheme was announced in October 2020 for Central Government Employees and later via a press release, the scheme was extended to private … LTC money voucher scheme. Related: FM relaxes rules of LTC cash voucher scheme. LTC Special cash voucher scheme Finmin clarifies FAQ No – 2. Abc Small. What is LTC Cash Voucher scheme 2020? LTC Cash Voucher Scheme Example. The government said that the LTC scheme is applicable to the LTC fare left unutilized during the Block Year as mentioned in the LTC Cash Voucher Scheme Order effective from October 12, 2020. To provide boost to consumer demand, the Hon’ble FM announced cash incentive schemes for employees in the form of ‘LTC Cash Voucher Scheme’ (LTC Scheme). Can an employee purchase such products in cash? The government has taken this step as part of a plan to increase demand in the economy by increasing consumer spending. LTC Cash Voucher Scheme 2021: Online Application Form PDF Download – The government has decided to give an interest-free advance of Rs 10,000 to all its officers and employees on festive occasions. An individual need not take leave for this purpose nor undertake any travel. For example, if they spend Rs 3,90,000 instead of the mandated Rs 4,32,000, they will be eligible for a tax exemption of only up to Rs 1,30,000. LTC Cash Voucher Scheme for Central Government Employees: In a new Office Memorandum, the Department of Expenditure (DoE) under the Ministry of Finance has issued new clarifications Special Cash Package equivalent in lieu of LTC for CG Employees – Example for Calculation of Special Cash Package on LTC [Click to read in detail] LTC Cash Voucher Scheme Clarification PDF Download. While availing the scheme, multiple bills are accepted and the purchase should have been done from the date of issue of the LTC Cash Voucher Scheme Order dated October 12, 2020, till the end of … The Department of Expenditure published an important order on 12th October 2020 regarding the new LTC scheme for Central Government employees. Complete Details about Apply, Online Application Form of LTC Cash Voucher Scheme, Eligibility Criteria and Benefits. This option can be exercises in lieu of the applicable LTC in the Block year of 2018021. LTC Cash Voucher Scheme for Central Government Employees: In a new Office Memorandum, the Department of Expenditure (DoE) under the … Income tax exemption ill be provided on the payment of cash allowance up to Rs 36,000 per person as Deemed LTC fare per person (Round Trip). As per this novel scheme valid until 31st March 2020, Cash Equivalent of LTC comprising Leave Encashment and LTC Fare at flat rate (Deemed amount based on the Pay Level of the Employees) will be paid if a Central Government Employee is willing to opt for this scheme and spends equal to Leave Encashment amount and Three times of Deemed LTC Fare allowed, towards purchase of items or … No. Due to COVID-19 it was impossible for anyone to travel anywhere so the Govt of India have come up with LTC Cash Voucher scheme 2020 – 2021 under which the Central govt/state govt/private sector employee can avail the LTC Cash Voucher which will replace the actual travel which was earlier required to avail the tax benefits. 12(2)/2020-E.II(A) Government of India Ministry of Finance Department of Expenditure. Save. January 22, 2021 Updated on January 22, 2021 by Masters India. Abc Large. OFFICE MEMORANDUM. This is a one-time scheme and payment will be only in lieu of one LTC during the block of four years 2018-21. The Leave Travel Concession (LTC) cash Voucher scheme has been notified by the government in Budget 2021. Things You should know about LTC Cash Voucher Scheme towards Tax Exemption in lieu of LTA for FY 2020-21 Learn what is LTA and LTC and how you can claim LTC Cash Voucher Scheme -- India's Fastest growing Online Shopping Community to find Hottest deals, Coupon codes and Freebies. ET Online Last Updated: Oct 13, 2020, 03:36 PM IST. The Leave Travel Concession (LTC) Cash Benefit Voucher Scheme is a little bit confusing on the calculation with or without encashment. If an individual opts for the new tax regime, then tax benefit under the scheme will not be available. This should help people to some extent as it makes one third of … LTC cash voucher scheme is now available to private sector workers too with some changes. In the above example, the Voucher No. The scheme. Govt launches tax-exempt LTC cash voucher scheme to boost consumer spending. LTC cash voucher and festival advance scheme: The ministry has decided to allow government and private sector employees to use their LTC tax-free benefit for various types of purchases subject to certain conditions while an interest-free festival advance … If the employee opts for the LTC Scheme, tax exemption on the reimbursement of LTC fare will continue; however, leave encashment will remain taxable (applicable TDS will also be deducted). Buy goods and services worth three times the tax-exempt amount paid before 31.3.2021. Spend the money on buying items attracting GST of 12% or more from GST registered vendor and purchase must be in digital mode; GST invoice will have to be produced. While announcing LTC Cash Voucher Scheme on 12th October 2020, the Finance Minister said, “The biggest incentive for employees to avail the LTC Cash Voucher Scheme is that in a four-year block ending in 2021, the LTC not availed will lapse, instead, this will encourage employees to avail of this facility to buy goods which can help their families. To boost the consumption that has been ravaged by the Covid-19 Pandemic, the Government announced a Special Cash Package on 12 October 2020 for Central Government employees. Through the implementation of the LTC Cash Voucher for the year 2021, the government will be giving cash vouchers to the employees of the central government and also the state government. In view of the situation arising out of outbreak of COVID pandemic, it is proposed to provide tax exemption to cash allowance in lieu of LTC. In order to receive benefits under the scheme, an employee has to fulfill the following conditions: The scheme requires employees to spend three times the prescribed amount of LTC on the purchase of goods/services with a GST rate of 12 percent Grab the information of revised GST slab rates on … Under the LTC cash voucher scheme, travel expenses up to ₹ 36,000 per person can be claimed as deduction. Benefits Of LTC Cash Voucher Scheme. The Centre has extended the LTC Cash Voucher Scheme to non-government employees, too, in a bid to boost spending. This package is in lieu of the Leave Travel Concession (LTC). The benefit of the LTC Cash Voucher scheme is available in the old tax regime. [Click to read in detail] LTC Cash Voucher Scheme FAQ No 2. The LTC Cash Voucher Scheme was announced by Finance Minister Nirmala Sitharaman on the 12th of October 2020.. With the first full-year economic contraction in decades, there is a risk that India might slip into recession for a while. Join us for a webcast titled ‘Benefits under the new LTC Voucher scheme for private sector’ scheduled for Wednesday, i.e. New Delhi, October 29: Income tax exemption under the 'LTC Cash Voucher Scheme' has been extended to non-central government employees, said the IT department on Thursday.Non-central government employees, who now can seek income tax exemption under the 'LTC Cash Voucher Scheme', include employees of state governments, public sector enterprises, banks and private sector. Government in Budget 2021 notified Leave Travel Concession (LTC) cash Voucher scheme. Process for Private Sector Employees to Avail the LTC Cash Voucher Scheme. This is a scheme in lieu of LTC travel. LTC cash voucher scheme and its eligible goods and services Most of the central government employees have a doubt on GST rate to avail benefit of goods and services for LTC cash voucher scheme. Abc Medium. The government has introduced another initiation LTC (Leave Travel Concession) Cash Voucher Scheme to benefit employees. 11 November 2020 at … North Block, New Delhi Dated 10th November, 2020. There are two more slab rates of ₹ 20,000 and ₹ … LTC Cash Voucher Scheme. W31315 should contain the scan images of only “LTA Cash Voucher Scheme - GST Bills”.