Important News for Central Government Employees, Take Advantage of LTA Cash Voucher Scheme and Get Tax Exemption

0
LTA Cash Voucher Scheme

New Delhi: This is work news for central employees. If the employees could not travel due to Corona and could not claim to leave travel allowance i.e. LTA, the government has announced a separate scheme for them. Earlier in October, the government had announced LTA cash vouchers. Under this scheme, the employees of the center can make purchases by spending cash and get the amount of LTA through their bills. After this, the government had also given the benefit of this facility to non-central employees. However, the condition for this is that the benefit of cash voucher will be given only for non-food items, or for those items which are taxed at 12 percent or more. Today we are going to tell you how central employees can shop under this scheme.

LTA Cash Voucher Scheme

Do this without traveling LTA claim
In order to claim to cash in lieu of leave, the employee has to spend the same amount of money on the purchase of goods as the amount of leave entitlement. Employees of both categories have to spend a minimum of 3 times the value of their LTA eligibility to file a claim for LTA exemption. For this, the employees have to make purchases from the seller registered under GST. It will be valid only on purchase of goods with GST of 12 percent or more. It is also worth noting that all this payment must be made digitally.

This is how you will get tax exemption
Let you know that the amount of LTA claim given to the employee for traveling to any place in the country is tax deductible. This visit is valid for any employee either on family leave or on retirement during work. The rule is that any employee can avail LTA for two trips during the pre-determined block period of 4 calendar years. The block period 2018-2021 is currently underway.

Maybe deprived of benefits, keep this in mind
If the employee pays in cash or pays by check, he will not be able to avail of the benefit of this scheme. In addition, the employee has to submit the original copy of the invoice to his institute without paying tax. If the employee is not able to spend the full amount, they will also get a proportional benefit. If LTA is part of the employee’s salary, the institute will not accept the employee’s LTA claim. After deducting tax on the slab rate of the employee, the amount will be treated as a taxable element.

Advertisement