LTC Cash Voucher Scheme Online Registration Process | LTC Cash Voucher Scheme Implementation Process | LTC Cash Voucher Scheme Apply Online
As you all know that the GDP of our country is declining very fast. To overcome this problem, the government is running many schemes. Today we are going to tell you about such a scheme which is known as this scheme. We are going to tell you all the important information about LTC Cash Voucher Scheme like What is LTC Cash Voucher Scheme? Its purpose, benefits, features, main attractions etc. So if you are willing to get every single detail about this scheme then you are requested to read this article very carefully till the end.
As per the rules of the government, LTC is a Leave Travel Concession which is remuneration to the employees for traveling expenses for two trips in 4 years. The first is anywhere in India and the second is two trips to the hometown or hometown. Under Leave Travel Concession, the employer reimburses the air or rail fare as per the scale and the employee also gets 10 days leave encashment.
LTC Cash Voucher Scheme 2022-23
As we all know that the nationwide lockdown has hampered the travel plans of the people and keeping this in mind the government has started the LTC Cash Voucher Scheme on 12th October 2020 . The LTC cash voucher scheme was extended to other sector employees as well. 29 October 2020 Now it was later extended to cover private sector employees as well. Most of the organizations are still looking for the way forward and are waiting for the legislative amendment made by the government to provide additional clarity regarding the LTC scheme.
Procedure for availing benefits under LTC Voucher Scheme by Private Sector Employee
The private sector employees must fulfill the below-mentioned conditions to avail benefits under the LTC Cash Voucher Scheme . the conditions are as follows
- Private sector employees will have to spend three times the amount of LTC rent on purchase of goods and services with a GST rate of 12% or more.
- This amount should be spent in the period from 12 October 2020 to 31 March 2021
- Mode of payment should be Cheque, UPI, Debit and Credit card etc.
- Employees should submit a copy of the invoice to the employer containing the seller’s GST number and the GST amount paid
If all the conditions are fulfilled by the employee, then the deemed LTC rent to be paid to the employees will be tax free.
Tax Benefits under LTC Cash Voucher Scheme
Approx Rs. 36000 per person will be provided to private sector employees. The deemed value of LTC discount is as follows:-
|number of family members||3|
|Maximum discount available||108,000|
|expenses incurred by the family||3,24,000|
|Expenditure to be incurred for availing maximum discount||3,24,000|
|Non-taxable allowance receivable by employee||1,08,000|
LTC Cash Voucher Scheme
As you all know savings have increased due to coronavirus and consumers are not spending much. This has resulted in a reduction in GDP. To increase the demand, the government has come up with the LTC cash voucher scheme . Through this scheme, the government expects to generate additional demand of Rs 1 lakh crore in the economy.
Under the LTC cash voucher scheme , government and private sector employees can use their leave travel concession tax-free benefits for purchases of goods and services on which 12% or more GST is levied. To avail the benefits, consumers will have to spend three times the LTC fare for purchasing goods and services that attract 12% or more GST. This expenditure has to be done before 31 March 2021. For example, if the leave travel concession is Rs 50,000 then employees need to spend Rs 1,50,000 on goods and services that attract at least 12% GST. It should be noted that if you do not spend the amount, you will have to pay tax on the leave travel concession fare as per your marginal tax rate.
LTC Cash Voucher Scheme Latest News
The central government has announced that insurance paid between the period 12 October 2020 and 31 March 2021 will be covered under the LTC cash voucher scheme. The Department of Expenditure also says that people on purchase of goods like cars and others can submit a self-attested photocopy of the bill instead of giving their original copy to avail benefits under the scheme. They also state that the existing policies will not be covered under this LTC cash voucher scheme.
As we told you earlier that the government has announced that premiums for insurance policies paid between 12 October 2020 2 March 31, 2020 will be covered under the LTC cash voucher scheme, it is also said that its To get the benefits under the Voucher Bill Scheme, one has to submit it before 31 March 2021. Vouchers and bills must be submitted before the date of retirement. Employees are not required to submit their original documents as self-attested copies will suffice for submission.
No original documents required
Self-attested photocopies of bills have to be submitted instead of original bills on purchase of goods like cars and other employees to avail benefits under this scheme. As announced by the government on October 12, employees can buy any goods or services with a GST rate of 12% and payment for such purchases can be made through digital mode or check mode, on-demand draft or NEFT or RTGS. Have to go The government has extended this skin to two non-central government employees who are private sector employees state government employees in public sector toys dated 29 October 2020
LTC Cash Voucher Scheme Latest Clarification
Finance minister Nirmala Sitharaman and state finance minister Anurag Singh Thakur are trying to revive the economy hit by the coronavirus pandemic. He announced that the central government is ready to take necessary steps to improve the economy. He also said that soon the picture will be clear on LTC for private sector employees. With the recently announced incentives, he said that the intention of the government is to provide necessary assistance to the underprivileged and poor section. The package was announced for government employees, but this expenditure is also going to be spent on some items of small traders so that the economic condition of small traders also improves.
Impact of LTC on Private Sector
The impact of LTA on the private sector will become clear in the coming weeks. The Finance Minister of the state said that the clarification will be issued very soon for the employees who have adopted the new track system or are already availing the benefit of LTC.
Country providing free food grains to the people
In an interview with the English newspaper Times of India, Anurag Thakur has referred to both the stimulus package and its impact on the economy. India is the only country where 80 crore people will be given food grains for 8 months without any charges. Apart from this, Rs 68000 crore has been transferred to the accounts of poor people and several steps have been taken with them for micro, small and medium enterprises.
Better condition for rural economy
Regarding the rural economy, Anurag Thakur had said in the opinion of the Center that it is in better food condition. It is not just about MNREGA or agriculture in the rural economy, there is work being done at the infrastructure level as well. Which are providing new employment opportunities to the people while people in rural areas are investing to buy tractors and motorbikes and the demand for four wheelers is increasing day by day.
Deemed LTC Fare
These are the number and value of LTC vouchers to the employees.
|Employees who are entitled to business class airfare||Rs 36000|
|Employees entitled to an economy class of airfare||Rs 20000|
|Employees entitled to any class of rail fare||Rs 6000|
Benefits of LTC Cash Voucher Scheme to the economy
Through LTC cash voucher scheme the government is hoping to raise the demand of Rs 28000 crore only from the government employees. Of this, Rs 19,000 crore will be demanded by central government employees, and Rs 9,000 crore will be demanded by state government employees. The benefit of this scheme will also be given to the private sector employees if the employers are giving the benefit of this scheme to their employees.
The benefit of LTC cash voucher scheme to the government
GST collection has been badly affected due to the coronavirus pandemic. Through the cash voucher scheme , demand will be created for those goods and services on which at least 12% or more GST has been levied. This will increase the GST collection. Due to which the government will get enough money.
Key Features of LTC Cash Voucher Scheme
|scheme name||LTC Cash Voucher Scheme 2021|
|launched by||Indian government|
|beneficiaries||Private and government sector employees of the country|
|Objective||boost the economy by increasing demand|
|Department||both government and private departments|
Objective of LTC Cash Voucher Scheme
The main objective of LTC Cash Voucher Scheme is to increase demand and GDP by giving benefits to government and private sector employees. Under this scheme, employees can avail their leave travel concession to purchase goods and services on which 12% or more GST is levied. This will encourage the employees to spend money which will automatically boost the economy of the country.
Benefits and features of this plan
- LTC cash voucher scheme has been launched to boost the economy of the country
- Through this scheme, employees can avail their Leave Travel Concession benefits by spending three times their tax-free Leave Travel Concession amount.
- This amount has to be spent on those goods and services on which at least 12% or more GST is levied
- Through this scheme, the government expects to generate additional demand of Rs 1 lakh crore in the economy.
- Expenditure must be on or before 31st March 2021
- GST collection will also increase due to LTC cash voucher scheme
- Both government and private sector employees can take advantage of this scheme.
- The benefit under the scheme will be around Rs 5,675 crore to the government.
- Government will pay the entitled rent in the form of cash vouchers which have to be spent before 31st March 2021
- This amount can be spent only on buying non-food GST rated items
- Procurement is to be done in digital mode from GST registered outlet
- To get the benefit under this scheme GST invoice has to be produced
LTC Cash Voucher Scheme Online Registration Process
The registration process to apply for LTC Cash Voucher is not yet announced. We will update you through this article whenever any update will be given by the concerned authority regarding the registration process of LTC Cash Voucher. Till then stay on our website
Through this article we have provided you all the important information about LTC Cash Voucher Scheme . If you still have any kind of doubt then you can ask us in the comment section. Your comment is very important for us. We will try to answer all your questions and solve all your problems.
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