7th Pay Commission: Union Government Gave This Important Information For Central Employees, Direct Impact On Pocket

Central employees can use LTC Cash Voucher Scheme for insurance premium payments. Modi government has shared this information while releasing the third set of frequently asked questions.

The Department of Expenditure working under the Ministry of Finance has given information in response to a question that LTC Cash Voucher Scheme can be used to pay the premium which is purchased between 12 October to 31 March 2021.

According to the Department of Expenditure, if an employee pays the premium under LTC Cash Voucher Scheme on the purchase of a new policy, then he has to submit the bill or voucher by 31 March 2021. This scheme cannot be used for old insurance policies.

What is LTC Cash Voucher Scheme: This time a cash voucher is offered to an employee in lieu of leave travel concession or leave travel allowance. Under this scheme, employees can buy goods or services equal to 3 times the rail or air fare in lieu of holidays.

That is, you can take advantage of tax savings without traveling to any place. At the same time, the goods on which GST is 12 percent or more, only employees can buy them through cash voucher scheme. Explain that this year, due to corona crisis, dearness allowance is being paid at the old rate (17 percent) only. This system will remain in force till June 2021 next year. In such a situation, it is hoped that after June next year, dearness allowance can be relieved.

(With inputs from jansatta.com)

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