How does LTC cash voucher work?

The LTC cash voucher scheme is a new initiative by the Indian Government to incentivise consumption. In this scheme, the employees will receive an equivalent sum of their eligible LTC fare as a cash payout that is exempt from tax. How much every employee receives is based on their individual allowed LTA limit.

Who are eligible for LTC cash voucher scheme?

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.

How is LTC cash voucher scheme calculated?

How to calculate LTC Cash Voucher amount?

1. Leave encashment (1,38,500 x 1.17) x10/30 = Rs.
2. Fare Value: Rs.
3. Total Value: = Rs.
4. Amount to be spent for full cash benefit = Rs.
5. (a) Share of Leave Encashment in total = 54,015 X 100 / 2,94,015 = 18\%
6. (b) Share of Fare in total = 80,000 X 100 / 2,94,015 = 27\%

Is LTC amount taxable?

LTC which could not be spent is taxable in the hands of employee. Thus, the Government has provided for Income tax exemption on account of value in lieu of Leave Travel Concession whereby a salaried employee can claim tax exemption merely on purchase of certain goods or services by the employee or their family members.

How is special cash package in lieu of LTC calculated?

How is 10 days leave encashment for LTC calculated?

7th CPC Leave Encashment Calculation Formula

1. Earned Leave = [(Basic Salary + DA) / 30] x No of days.
2. Hal Pay Leave = [(Half Pay Leave Salary + DA) / 30] x No of days.

Can I avail LTC by own car?

“(c) In case, there is no public transport available in a particular stretch of journey, the Government servant may be reimbursed as per his entitlement for journey on transfer for a maximum limit of 100 Kms covered by the private/ personal transport based on a self-certification from the Government servant.

Is LTC cash voucher scheme applicable for private sector?

On 29th October 2020, the Income Tax department has announced that the benefit of income tax exemption form LTC Cash Voucher Scheme will be allowed to all employees, including workers in the central government, state government, state-owned organisations, and the private sector.