LTC Cash Voucher Scheme Online Registration Process | LTC Cash Voucher Scheme Implementation Process | LTC Cash Voucher Scheme Apply Online | As you all know, the GDP of our country is declining at a very fast rate. To overcome this problem the government is launching various 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 regarding the LTC Cash Voucher Scheme like what is LTC cash voucher scheme? its objective, benefits, features, key highlights, etc.
What is LTC?
As per the rules of government, LTC is a leave travel concession which is the remuneration for travel expenses the employees get for two journeys in 4 years. The first one is anywhere in India and another one is to the hometown or two journeys in the hometown. Under leave travel concession the employer reimburses the air or rail fare as per scale and the employee also gets 10 days of leave encashment.
LTC Cash Voucher Scheme December Update
As we all know the people’s travel plan has been disrupted by the nationwide lockdown and by keeping a view of these the government has launched the LTC Cash Voucher Scheme on 12th October 2020. The LTC cash voucher scheme was further extended the Other sector employees also on 29 October 2020 now it was extended later to cover the private sector employees also. Most of the organizations are still searching out the way forward and waiting for the legislative amendment made by the government so that they can provide additional clarity related to the LTC scheme.
Process To Avail Benefit Under LTC Voucher Scheme By Private Sector Employee
The private sector employees will have to fulfill the condition given below to avail of the benefit under the LTC cash voucher scheme. Conditions are as follows
- The private sector employees will have to spend three times the amount of LTC fare on the purchase of goods and services with the GST rate of 12% or more
- This amount must be spent from the period October 12 2020 to March 31st, 2021
- The mode of payment should be Cheque, UPI, Debit and Credit Card, etc.
- The employees should submit a copy of the invoice to the employer containing the GST number of the vendor and GST amount paid
If all the conditions are fulfilled by the employee the deemed LTC fare which is going to be paid to the Employees will be tax exempted.
Tax Benefit Under LTC Cash Voucher Scheme
Around Rs. 36000 per person will be provided to the private sector employees. The deemed value of LTC exemption are as follows:-
|No of members in family||3|
|Maximum Exemption Available||108,000|
|Expenditure Incurred By The Family||3,24,000|
|Expenditure To Be Incurred To Avail Maximum Exemption||3,24,000|
|Eligible Non Taxable Allowance Receivable By The Employee||1,08,000|
LTC Cash Voucher Scheme
As you all know, due to coronavirus there is a spike in savings and the consumers are not doing much expenditure. This has resulted in a decrease in gross domestic product. In order to increase demand, the government has come up with an LTC Cash Voucher Scheme. Through this scheme, the government expects to create additional demand of Rs 1 lakh crore in the economy.
Under the LTC Cash Voucher Scheme, the government and private-sector employees can use their leave travel concession tax-free benefit for purchasing goods and services that have 12% or more GST levied on them. In order to avail of the benefits, the consumers are required to spend three times the LTC fare for purchasing those goods and services that have 12% or more GST. This expenditure has to take place before 31st March 2021. For example, if the leave travel concession is Rs 50,000 then the employees are required to spend Rs 1,50,000 on the goods and services that attract at least 12% GST. It is to be noted that if you do not spend the amount then you have to pay the tax as per your marginal tax rate on the leave travel concession fare.
LTC Cash Voucher Latest Update
The central government has announced that the insurance paid between the period of October 12 2020 and March 31st, 2021 will be covered under the LTC cash voucher scheme. The Department of expenditure also states that on the purchase of goods like cars and other people can submit a self-attested photocopy of Bill instead of giving their original one to avail the benefit under this scheme. They also state that the existing policies will not be covered under this LTC cash voucher scheme.
Payment Of Premium
As we told you before the government has announced that the premium for insurance policies that would be paid between October 12 1 2020 2 March 31st, 2020 will be covered under the LTC cash voucher scheme it is also said that voucher bills for availing benefit under this scheme have to be submitted before 31st March 2021. Vouches and bills should be submitted before the date of superannuation. employees are not required to submit their original documents as the self-attested copies would be enough for the submission.
No Original Documents Are Required
On the purchase of goods like cars and other employees have to submit their self attested photocopies of Bill instead of original bills to avail the benefit under this scheme. as the government announced on 12 October employees can purchase any goods or services with the GST rate of 12% and above the payment for such purchases have to be made via digital mode or check mode on-demand draught or NEFT or RTGS. The government has extended this skin two non-Central Government employees that are private-sector employees State Government employees public sector in toys on the date 29 October 2020
LTC Cash Voucher Scheme New Update
Finance Minister Nirmala Sitharaman and Finance Minister of the State known as Anurag Singh Thakur are trying to improve the economy which was affected by the coronavirus epidemic. He announced that the Central government is ready to take the necessary steps to improve the economy. He also said that soon the picture on LTC will be cleared for private-sector employees. Along with the recently announced incentive, he said the intention of the government is to provide necessary help to the deprived and poor class. The package was announced for Government employees but this expenditure is also going to be on some items of small merchants so that the financial condition of small merchants would also improve.
Effects Of LTC On Private Sector
The effects of LTA on private sectors will be clear in the upcoming week. 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 they have already taking the advantage of LTC
Country To Provide Free Food Grains To People
In an interview with English newspaper Times of India, Anurag Thakur has mentioned both the stimulus package and its impact on the economy. India is the only country where 80 crore people will be given food grain for 8 months without costing any charges. In addition to this 68000 crore rupees have been transferred to the accounts of poor people and with their several steps have been taken for micro small and medium enterprises
Better Condition For Rural Economy
Regarding the rural economy, Anurag Thakur had said in the center view that it is in a better food position. It’s not just about MGNREGA or agriculture in the rural economy, work is being done here at the infrastructure level also. Which are providing new employment opportunities to the people whereas people are investing to buy tractor & motorbikes in rural areas And the demand for four wheeler is increasing day by day
Deemed LTC Fare
These are the number and value of LTC vouchers to employees.
|Employees who are entitled to business class of airfare||Rupees 36000|
|Employees who are entitled to an economy class of airfare||Rupees 20000|
|Employees who are entitled to Rail fare of any class||Rupees 6000|
LTC Cash Voucher Scheme Benefits To The Economy
Through LTC Cash Voucher Scheme the government is expecting to increase demand of Rs 28000 crore from government employees only. Out of this Rs, 19,000 crore demand will be created by central government employees, and Rs 9,000 crore demand will be created by State Government employees. The benefits of this scheme will also be extended to the private sector employees if the employers are offering this scheme’s benefits to their employees.
LTC Cash Voucher Scheme Benefits To The Government
Due to the coronavirus pandemic the GST collection has been impacted severely. Through the Cash Voucher Scheme the demand will be created for those goods and services that have at least 12% or more GST levied on them. This will increase the GST collections. As a result of which the government will get sufficient funds.
Key Highlights of LTC Cash Voucher Scheme
|Name Of the Scheme||LTC Cash Voucher Scheme|
|Launched By||Government of India|
|Beneficiaries||Private And Government Sector Employees Of The Country|
|Objective||To Boost The Economy By Increasing Demand|
|Department||Both Government and Private Departments|
Objective Of LTC Cash Voucher Scheme
The main objective of the LTC Cash Voucher Scheme is to increase the demand and gross domestic production by offering benefits to the employees of the Government and private sector. Under this scheme, the employees can avail of their leave travel concession benefits for purchasing goods and services that have 12% or more GST levied on them. This will stimulate the employees to spend money that will automatically boost the economy of the country.
Benefits And Features Of This Scheme
- LTC Cash Voucher Scheme has been launched in order to boost the economy of the country
- Through this scheme, the employees can avail of their leave travel concession benefits by spending three times the amount of their tax-exempted leave travel concession
- This amount has to be spent on goods and services that have at least 12% or more GST levied on them
- Through this scheme, the government expects to create additional demand of Rs 1 lakh crore in the economy
- The expenditure should take place on or before 31st March 2021
- The GST collection will also increase due to LTC Cash Voucher Scheme
- Both Government and private sector employees can avail the benefit of this scheme
- The benefits under the scheme will cause the government around Rs 5,675 crores
- The government will pay the entitled fare as cash vouchers which have to be spent before 31st March 2021
- This amount can be spent only on buying non-food GST rated items
- The purchase has to take place in digital mode from GST registered outlets
- For getting benefits under this scheme GST invoice will have to be produced
LTC Cash Voucher Scheme Online Registration Procedure
The Registration process to apply for LTC Cash Voucher is not yet declared. Whenever there will be an update given by the concerned authority related to the Registration process of LTC Cash Voucher, we will update you through this article. Until then stay tuned to our website
Through this article we have provided you all the important information regarding the LTC Cash Voucher Scheme. If you are still having any kind of doubts then you can ask us in the comments 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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