October 30, 2020 2:16 PM

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Finance Ministry extends I-T exemption under LTC cash voucher scheme to non-central government employees

Government has decided to extend the income tax exemption available under leave travel concession (LTC) cash voucher scheme to non-central government employees also to boost consumer spending. Non-central government employees will include employees of state governments, public sector enterprises, banks and private sector.<br />'' <br />''The move will allow non-government employees also to claim tax free cash allowance from their employers if a LTC scheme similar to one in the government sector is included in their working contract.<br />'' <br />''The goods and services should be purchased only from GST registered vendors through digital mode. Employees should make this payment during October 12, 2020 to March 31, 2021.<br />'' <br />''The government on October 12 announced giving out cash vouchers to central government employees this year in lieu LTC fare which could be spent only on buying non-food items with GST rate of 12 per cent or above.<br />

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