The government is taking a series of steps to bring the economy of Corona back on track. Most of this emphasis is on increasing consumer demand capital expenditure in the market. This is the reason that in view of the festive season, it has been announced to give advance to Government employees for the purchase of Holiday Travel Concession (LTC). It is expected that private companies will also take such initiatives. The government says that its announcement will create a demand for one lakh crore in the market.
Use of special festive advances
Under this, the government will give 10 thousand advances free of cost to the employees, who will have to return the government in ten installments. The amount will be available in the pre-loaded RuPay card. It will cost the Central Government Rs 4000 crores.
This is how you will get the benefit
According to the government's announcement, it will give tax concession on LTC to the employees without traveling but for this, they will have to spend 3 times the LTC on goods and services with 12% or above GST. That is, if the LDC rent in your salary is 40 thousand, then to save income tax on this, you have to buy goods worth Rs 1.20 lakh. You will also have to make this payment through a digital medium and if you do not want to take advantage of this scheme then you have to pay according to the marginal tax rate applicable to your LTC. That is if you come in 10 percent income tax celebrations, then on 40 thousand LTC, you will have to pay 12 thousand according to 4 thousand and 30 percent tax slab.