Who can avail of benefit under LTC cash voucher scheme?
- To avail of the benefit under the LTC cash voucher scheme, employees are required to submit bills for purchases made between 12 October and 31 March
The government announced the leave travel concession (LTC) cash voucher scheme in October to boost consumption by allowing employees to claim tax benefit against bills of goods and services purchased instead of travel expenses.
The last date for claiming the benefit under the scheme is 31 March 2021. But there are conditions to who can claim the benefit.
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Let's check if you are eligible for the scheme:
This scheme is not applicable to employees who have opted for the new tax regime, in which tax rates are lower but you let go of most deductions and exemptions.
Also, the taxpayer should not have already exhausted the LTC exemption for the block (current block is 2018-21). Every taxpayer can claim leave travel allowance (LTA) exemption for two journeys in a block of four years.
The scheme was initially launched for government employees but was later extended to private sector employees as well.
To avail of the benefit under this scheme, employees are required to submit bills for purchases made between 12 October and 31 March.
The amount required to be spent is equivalent to three 3 times the deemed LTC fare. Bills of goods and services with GST of ₹12% or above can be claimed under the scheme. The payment for the goods/services is mandatorily required to be made through a digital mode.
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So, only if you fulfill the above mentioned conditions will you be able to claim the benefits under the scheme.
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