7th Pay Commission: Central Employees Must Know This Important Information On LTC Cash Voucher Scheme
The Modi government has offered leave travel concession (LTC) cash voucher scheme for the festive season to central employees. The government is giving some benefits to the employees under this scheme. Since the announcement of the scheme, the employees are in a dilemma on its terms but now the Finance Ministry has given clarification on it.
Actually the question of the employees is whether the employee is required to take leave to avail this LTC cash voucher scheme? Does an employee need to travel? The Department of Expenditure under the Ministry of Finance has informed that in order to take advantage of this scheme, employees do not have to travel anywhere or take leave. This special package has been offered to the employees in lieu of leave-travel fare allowance during the block 2018-21.
Actually, an employee gets the benefit of Leave Travel Concession or Leave Travel Allowance only till he travels with leave. It is necessary to travel after applying for LTC. If the journey is not done then the employee is not considered eligible for ALTC and its money is deducted from his account. But this time the government has offered cash vouchers in lieu of LTC, in such a situation, employees are expected to get relief after the clarification of the expenditure department.
Under this scheme, employees can buy goods or services of value 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. On the other hand, the goods on which GST is 12 percent or more, only employees can buy them through cash voucher scheme.
(With inputs from jansatta.com)