LTC Cash Voucher Scheme has been launched by the Government of India. The period of lockdown in the Covid19 epidemic has caused a sharp decline in the country’s economy. Therefore, keeping an eye on the contraction of the country’s economy, Finance Minister Nirmala Sitharaman took the initiative to revive the LTC Cash Voucher Scheme on Monday 12 October 2020, which will help boost the country’s economy. Readers are advised to read the article till the last to know more about LTC Cash Voucher Scheme Benefits, the duration of LTC Scheme and how to use the amount of the scheme.
What is LTC Cash Voucher Scheme 2020
Finance Minister Nirmala Sitharaman introduced the scheme which will help in making demands. The objective of the scheme is to boost the economy of the country by making travel concession tax-free benefits for various types of purchases for central government workers subject to certain conditions as the scheme is a central government scheme. Sitharaman said that supply constraints in the economy have come down, but consumer demand is still affected. He said that some proposals are aimed at increasing spending, while others are “directly linked to the increase in GDP (GDP)”. The scheme is expected to generate a demand of around Rs 19,000 crore based on the demand of central government employees, it expects an additional demand of Rs 9,000 crore from the state government employee. More details of this scheme are given below, readers are fully advised to go. .
Overview of LTC Scheme
| Scheme Name | LTC cash voucher Scheme |
| Launched by | Central Government |
| Launch Year | 2020 |
| Objective | Boost up Economy |
| Beneficiary | Central government workers |
| Current Status | Active |
| Scheme Category | Central government Scheme |
LTC cache voucher scheme objective
The corona epidemic has caused a sharp decline in the country’s economy. Therefore, the scheme has been launched with the objective of boosting the economy of the country. The scheme will provide a tax benefit on the holiday travel concession component without actually traveling but the employees will have to purchase three times the LTC component fare. Also, the items purchased will be of a type that attracts 12% or more GST which will help in increasing GST collection.
Benefits of LTC Scheme
- This scheme will benefit a large section of the society and eventually the country will benefit from this scheme. Some of the major benefits of the scheme are given below.
- Citizens will be given tax benefits on holiday travel concession components.
- The scheme will generate a demand of Rs 28,000 crore in the country.
- Employees of private companies can also take advantage of this offer if their employer is ready to take advantage of the scheme.
- This scheme will help in boosting the economy of the country.
Salient features of LTC Cash Voucher Scheme
Tax benefits on LTC components will be given to all central government employees and officials.
Employees have to buy LTC fare components products thrice.
On the other hand, if you do not spend that amount, you may have to pay tax on the LTC component according to your marginal tax rate.
Items purchased will be charged a tax invoice.
The amount will be given for a period of 6 months i.e. 31 March 2021.
Only items of GST 12% or more will be purchased through this scheme.
Purchases will only be made at digital transaction locations.
The scheme would generate “an additional demand of Rs 28,000 crore in the economy”.