No need to pay income tax on this amount got by Central government representatives
New Delhi: In a major help for lakhs of salaried class individuals the nation over, the Center has said that central government workers will not need to pay an annual expense on the amount got against the leave travel concession (LTC). The declaration was made by Finance Minister Nirmala Sitharaman while introducing the Union Budget 2021 in the Parliament on Monday. "To give help to representatives, it is proposed to give charge exclusion to the amount given to a worker instead of LTC subject to causing indicated consumption," the Finance Minister had said, as announced. Remarkably, the focal government in October a year ago had reported this plan for the individuals who couldn't guarantee their LTC tax break due to limitations on heading out due to the Covid pandemic.
Benefit for central government employees:-
The greatest motivation for central government representatives to benefit from the LTC Cash Voucher Scheme is that in a four-year block finishing in 2021, the LTC not profited will slip by, all things being equal, this will urge workers to benefit from this office. A worker, selecting this plan, will be needed to purchase merchandise or administrations worth multiple times the charge and 1 time the leave encashment before 31st March 2021. The things purchased ought to be those drawing in GST of 12 percent or more. Just computerized exchanges are permitted and GST solicitations must be created.
Conditions to avail of this benefit:-
On the off chance that a representative selects this instead of one LTC in the Block of 2018-21, here are the significant conditions that the person in question should satisfy to profit of this annual assessment :
1] The worker goes through the cash of a bigger whole than the privilege under LTC on genuine consumption.
2] Cash likeness full leave encashment will be permitted, given the worker spends an equivalent whole. This will be tallied towards the quantity of leave encashment on LTC accessible to a worker.
During Coronavirus the central government had declared Cash Voucher Scheme for the focal government workers as they couldn't travel and claim the LTC benefit.