LTC cash voucher Scheme has been launched by the Government of India. The lockdown period in the covid19 pandemic has lead to a sharp downfall in the economy of the country. So, keeping an eye on the contraction of the country’s economy, Finance Minister Nirmala Sitharaman took the initiative to re-launch the LTC cash voucher Scheme on Monday 12th October 2020 that will help in boosting the economy of the country. Readers are advised to read the article till last to get more information about the LTC cash voucher Scheme Benefits, the Duration of the LTC Scheme, and how to use the amount of the scheme.
LTC cash voucher Scheme 2020
Finance Minister Nirmala Sitharaman launched the Scheme that will help in creating demands. The scheme aims to boost the economy of the country by leave travel concession tax-free benefit for various types of purchases subject to certain conditions to the workers of the central government as the scheme is a central government scheme. Sitharaman said supply constraints in the economy have eased, but consumer demand is still affected. Some proposals are aimed at advancing expenditure while others are “directly linked to increases in GDP (Gross Domestic Product)”, she said. The scheme expects demand creation of around Rs 19,000 crore on account of demand from central government employees, it expects additional demand generation of another Rs 9,000 crore from state government employee More details of the scheme has been given below, readers are advised to go through completely.
Highlights of LTC Scheme
|Scheme Name||LTC cash voucher Scheme|
|Launched by||Central Government|
|Objective||Boost up Economy|
|Beneficiary||Central government workers|
|Scheme Category||Central government Scheme|
LTC cash voucher Scheme Objective
Corona pandemic has lead to a sharp shrinkage in the country’s economy. So, the scheme has been launched with the objective to boost up the economy of the country. The scheme will provide tax benefits on the Leave Travel concession component without having actually to travel but the employees have to purchase items Three times of the LTC component fare. Also, the items purchased will be of a type that attracts 12% or more GST that will help in boosting the GST collection.
LTC Scheme Benefits
- A large section of the society will be benefitted from this scheme and ultimately the country will be benefitted from the scheme. Some of the major benefits of the scheme are given below.
- Citizens will be given tax benefits on the Leave Travel Concession components.
- The scheme will generate a demand for 28,000 crores in the country.
- Employees of private companies may also avail of the offer if their employers are willing to avail of the benefits of the scheme.
- The scheme will help in boosting the economy of the country.
Key features of LTC cash voucher Scheme
- Tax benefits on LTC components will be given to all the employees and officers of the central government.
- Employees have to purchase products of Three times the LTC fare components.
- On the other hand, if you don’t spend that amount, you may have to pay tax as per your marginal tax rate on the LTC component.
- The tax invoice of the purchased items will be taken while purchasing.
- The amount will be given for a period of 6 months i.e. 31st march 2021.
- Only items with GST 12% or more will be bought through this scheme.
- Shopping will be done at places of Digital transactions only.
- The scheme will create an additional demand” of Rs 28,000 crore in the economy”.
All the information related to LTC cash voucher Scheme has been provided here. Kindly stay connected to get more of the scheme as soon as any information will be released by the concerned authority.