7th Pay Commission: Modi government has announced to provide relief to those central employees who could not take advantage of LTC due to Corona. In the budget, the Finance Minister has announced that the Cash Voucher Scheme of LTC (Leave Travel Concession) will not be taxed.
Delhi: 7th Pay Commission: After the economic loss in the Corona period, the Modi government has given great relief to the central employees. The government has notified the Cash Voucher Scheme (LTC Cash Voucher Scheme) in the budget in the Travel Allowance Holiday Scheme for government employees. This will mean that now central employees will not have to pay tax on this amount.
What is Cash Voucher Scheme
The scheme was announced on 12 October 2020. Earlier this scheme was only for central employees but later private and other state employees were also included in this scheme. In the budget speech, Finance Minister Nirmala Sitharaman said that LTC has been kept in tax exemption due to Covid 19 Mahamari. The government hopes that this scheme will also bring more money in the pockets of government employees and when there is money, it will also spend it. The economy will benefit from this entire system. Employees who could not take advantage of LTC due to Corona will be given the benefit of cash voucher scheme in the Travel Allowance Leave Scheme.
What is LTC
Central employees get LTC in 4 years. In this allowance, during this time, he can travel anywhere in the country. During this time, the employee gets a chance to go to his hometown twice. In this travel allowance, the employee gets the cost of air travel and rail travel. With this, employees also get a 10-day PL (Priviledged Leave).
Guidelines for cash voucher scheme
-Cash payment will be given to employees in lieu of LTC
– Travel fare will be paid according to the grade of the employee
– Payment of fare will be completely tax free
– Employee availing this scheme will have to spend three times the fare
– Leave Encashment will have to be spent on the same amount as payment
– expenses before 31 March 2021
– Employees will have to spend money on an item that attracts 12% or more GST
– Services only from GST registered vendor or merchant Or purchase of goods
– Payment of service or goods will also have to be done digitally
– GST receipt should be given while claiming travel allowance or holiday allowance.