In the Budget 2021, the general public has got a big relief. The Government has notified the Cash Voucher Scheme (LTC Cash Voucher Scheme) in the budget in the Travel Allowance Holiday Scheme for employees.
In Budget 2021, the serviceman has got a big relief. The Government has notified the Cash Voucher Scheme (LTC Cash Voucher Scheme) in the budget in the Travel Allowance Holiday Scheme for employees. If tax experts are to be believed, non-government employees will also get the benefit of this. Although earlier, only central government employees were getting the benefit of this.
Those in private jobs will get the benefit twice. That is, you will be able to get tax rebate on LTA twice between FY 2018 and 2021. If someone has waived LTA in 2018, then this allowance will be taxable in 2019.
7th Pay Commission: Please tell that in the Corona era, the government had announced this scheme giving more relief to the government employees last year. Under this scheme, employees will be given cash amount in lieu of travel allowance. Finance Minister Nirmala Sitharaman said that this scheme will bring more money in the pocket of government employees. When there is money, he will spend it. The economy will benefit from this expenditure.
7th Pay Commission: In the budget speech, FM said that LTC has been kept in tax exemption due to Covid 19 Mahamari. The scheme was announced on October 12, 2020. Later private and other state employees were also included in this.
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What is LTC
Central employees get LTC in 4 years. In this allowance, during this time, he can travel anywhere in the country. During this time, the employee gets a chance to go home to his hometown twice. In this travel allowance, the employee gets the cost of air travel and rail travel. With this, 10 days PL is also given to the employees. Those employees who could not take advantage of this LTC due to Corona, will be given the benefit of cash voucher scheme in the Travel Allowance Holiday Scheme.
Benefit of the scheme
– Cash payment is being given to employees in lieu of LTC.
– Travel fare will be paid according to the eligibility of the employee.
– Payment of fare will be completely tax free.
– Employees availing this scheme will have to spend three times the fare.
– Leave encashment will have to be spent equal to the payment.
– Will have to be spent before 31 March 2021.
– Employees will have to spend money on the item, which attracts 12% or more GST.
– Only services or goods have to be purchased from the GST registered vendor or merchant.
– Payment of services or goods will also have to be done in a digital way.
– GST receipt must be submitted while claiming travel allowance or leave allowance.
