7th Pay Commission: The LTC Cash Voucher scheme was announced giving relief to the government employees during the Corona period. Under this scheme, employees will be given cash amount in lieu of traveling allowance. No tax will be levied on this amount.
7th Pay Commission: The Central Government had given a big relief to the central employees in the last budget (Budget 2021). Actually, the Government has notified the Cash Voucher Scheme (LTC Cash Voucher Scheme) in Budget 2021 in the Traveling Allowance Leave Scheme for the employees. After this, the central employees do not have to pay tax on this amount. It is expected that in the Budget 2022 also big announcements can be made for the central employees.
What is Cash Voucher Scheme
The scheme was announced on 12 October 2020. Earlier this scheme was only for central employees but later private and other state employees were also included in this scheme. In the budget speech, Finance Minister Nirmala Sitharaman said that LTC has been kept in tax exemption due to Covid 19 Mahamari. The government hopes that this scheme will also bring more money in the pockets of government employees and when there is money, it will also spend it. The economy will benefit from this whole system. Employees who could not take advantage of LTC due to Corona, those employees will be given the benefit of cash voucher scheme in travel allowance leave scheme.
What is LTC
Central employees get LTC in 4 years. In this allowance, he can travel anywhere in the country once during this period. During this time, the employee gets a chance to go to his hometown ie home twice. In this traveling allowance, the employee gets the cost of air travel and rail travel. Along with this, employees also get PL (Priviledged Leave) of 10 days.
Guidelines for Cash Voucher Scheme
- Cash payment will be given to the employees in lieu of LTC.
- Travel fare will be paid according to the grade of the employee.
- Payment of fare will be completely tax free.
- The employee taking advantage of this scheme will have to spend three times the fare.
- For leave encashment, the same amount will have to be spent.
- Will have to be spent before 31 March 2021.
- Employees will have to spend money on that item, which attracts 12 percent or more GST.
- The services or goods have to be procured only from a GST registered vendor or trader.
- Payment for services or goods will also have to be done digitally.
- GST receipt will have to be given while claiming traveling allowance or leave allowance.
