7th Pay Commission Latest Update: Here’s A Good News For Non-central Govt Employees; Check Details

If you work in a private company i.e private sector, then this decision of Modi government will bring a smile on your face. Yes, before Diwali 2020, the Modi government has given you a gift (Diwali gift). Recently, the Central Government has given some facility to millions of central employees (DA, Bonus), which is about LTC. After this, the government has also provided some facilities for the personnel working in private companies, which is only about LTC.

In fact, it has been said by the Finance Ministry that the benefit of LTC Cash Voucher Scheme will be given to the employees of the central government as well as employees of private companies and all the state governments.

Like the central employees, the decision has been taken by the Modi government to give these employees a valid LTC Fair income tax exemption. However, the work of giving income tax exemption of maximum 36 thousand rupees will be done.

Know how much it will give you: According to experts, if you are going to sign a contract or are going to take advantage of an offer, then you must run a look at the term and condition. The benefit given by the government to the public is a good opportunity to save tax, but before that you need to keep a few things in mind.

• The employees are entitled to take LTC facility twice in 4 years
• Not only this, government employees are not required to pay tax on LTC.
• Private sector employees will also get LTC facility 2 times in 4 years. If the LTC facility is not availed, the company works to pay the arrears after tax deduction.
• Under the new scheme, you will be exempted from tax only after spending three times more than the leave encashment and LTC.
• Apart from this, it will be compulsory to buy goods worth 3 times the amount received from LTC, at which the GST rate is more than 12 percent.
• GST bill will also need to be presented to the employees.
• You have to make a purchase before 31 March 2021.

(With inputs prabhatkhabar.com)