Modi govt’s LTC Cash Voucher Scheme for employees: 3 things you want to know | Personal Finance News
New Delhi: In what could give a major boost to the government employees, Finance Minister Nirmala Sitharman recently announced a host of schemes.
The Finance Minister said that the Centre will launch `LTC Cash Voucher Scheme` and `Special Festival Advance Scheme`. The Finance Minister also announced a special festival advance of Rs 10,000 for all gazetted and non gazetted officers. This scheme, she explained is being revived and will be one time only.
Here are 3 things to know about the LTC Cash Voucher Scheme for central government employees
1. Under LTC Cash Voucher Scheme, the Government has decided to give cash payment to employees in lieu of one LTC during 2018-21, in which full payment on Leave encashment and tax-free payment of LTC fare in 3 flat-rate slabs depending on class of entitlement will be given.
2. An employee, opting for this scheme, will be required to buy goods / services worth 3 times the fare and 1 time the leave encashment before 31st March 2021.The items bought should be those attracting GST of 12% or more. Only digital transactions are allowed, GST Invoice to be produced.
3. 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.
The estimated cost of LTC Cash Voucher Scheme for central government employees is Rs 5,675 crore, for PSBs and PSUs it will be Rs 1,900 crore. Tax concessions for LTC tickets available for state govt. & private sector too, if they choose to give such facility, these employees too can benefit