He said he hoped the private sector would also try to pass on the benefits of the LTC voucher scheme to its employees.
Demand for this specialty has grown significantly as a result of recent corporate scandals. The market is stagnant, especially as people’s incomes fall. However, the central government has now announced special measures to increase demand in various sectors. Union Finance Minister Nirmala Sitharaman today announced two proposals. The first is the leave travel concession (LTC) cash offer scheme. The second is the Special Festival Advance Scheme. Sitharaman said there were signs that the savings of government and organized sector employees had increased.
She said, ‘We are taking the initiative to give incentives to such people to increase demand in the economy. In view of this, special mention was made of the LTC cash voucher scheme to increase consumer spending, as well as an interest-free loan of Rs 10,000 to central employees during the festival.
Finance Ministry Finance Secretary Tarun Bajaj said he hoped the private sector would also try to pass on the benefits of the LTC voucher scheme to its employees.
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Here are the highlights of the LTC cash voucher scheme …
The Finance Minister has announced that under this scheme, government employees will be able to use holiday encashment as well as three times the ticket charges in cash. Also, it is possible to buy food products with GST of less than 12 per cent. But, in order to take advantage of this, they have to pay through a digital transaction. GST invoice should also be shown.
How much burden on the government bag?
The central government is estimated to spend Rs 5,675 crore on public sector banks (PSB) employees and Rs 1,900 crore on public sector (PSU) employees. State Governments and Private Sector Employees will be given benefits under the tax exemption on LTC tickets. State and private sector employees will get the benefit of tax deduction if they get this benefit. Experts say that private sector companies can review the compensation structure given to their employees so that their employees can take advantage of today’s advertising.
10 thousand advance without interest
Under the Special Festival Advance Scheme, it is also proposed to provide Rs 10,000 interest free to government employees through a prepaid Rupee card. This amount must be spent by March 31, 2021. Employees can repay this advance in 10 installments. Demand in the economy has dropped due to the corona virus. The market is stagnant, especially as people’s incomes fall. However, the central government has now announced special measures to increase demand in various sectors. Union Finance Minister Nirmala Sitharaman today announced two proposals. The first is the leave travel concession (LTC) cash offer scheme. The second is the Special Festival Advance Scheme. Sitharaman said there were signs that the savings of government and organized sector employees had increased.
She said, ‘We are taking the initiative to give incentives to such people to increase demand in the economy. In view of this, special mention was made of the LTC cash voucher scheme to increase consumer spending, as well as an interest-free loan of Rs 10,000 to central employees during the festival.
Finance Ministry Finance Secretary Tarun Bajaj said he hoped the private sector would also try to pass on the benefits of the LTC voucher scheme to its employees.
Here are the highlights of the LTC cash voucher scheme …
Under the scheme, government employees will be able to avail holiday encashment, as well as three-time ticket charges in cash, the finance minister said. Also, it is possible to purchase products that are subject to GST of more than 12 per cent. But, in order to take advantage of this, they have to make payment through digital transaction and also have to show GST invoice.
How much burden on the public treasury?
The central government has estimated that it will cost public sector banks (PSBs) Rs 5,675 crore and public sector (PSU) employees Rs 1,900 crore. State governments are also likely to offer these benefits to private sector employees if they are given the tax-exempt benefit on LTC tickets. State and private sector employees will get tax exemption if they get this benefit.
Experts say that private sector companies can provide today’s advertising benefit to their employees by reviewing the compensation structure given to their employees.
It is
also proposed to provide an interest free advance of Rs 10,000 to government employees through a prepaid Rupee card under the 10,000 Special Festival Advance Scheme. This amount must be spent by March 31, 2021. Employees can repay this advance in 10 installments.
