In the budget, the Modi government has given great relief to the government employees. LTC Cash Voucher Scheme is exempted from income tax. Millions of government employees will have direct economic benefit as many of their money will be saved. Apart from this, the paused DA can also be restored again with arrears.
Delhi: 7th Pay Commission: During the Corona period, the responsibility on government employees had increased considerably. The Modi government also understands this properly. Realizing his good work, the Modi government has also given a gift. In the budget, Finance Minister Nirmala Sitharaman had announced that LTC Cash Voucher Scheme has been excluded from the income tax category.
What is Cash Voucher Scheme
The scheme was announced on 12 October 2020. Earlier this scheme was only for central employees but later private and other state employees were also included in this scheme. In the budget speech, Finance Minister Nirmala Sitharaman said that LTC has been kept in tax exemption due to Covid 19 Mahamari. The government hopes that this scheme will also bring more money in the pockets of government employees and when there is money, it will also spend it. The economy will benefit from this entire system. Employees who could not take advantage of LTC due to Corona, will be given the benefit of Cash Voucher Scheme in the Travel Allowance Leave Scheme.
What is LTC
Union employees get LTC ( Leave Travel Concession ) in 4 years . In this allowance, during this time, he can travel anywhere in the country. During this time, the employee gets a chance to go home to his hometown twice. In this travel allowance, the employee gets the cost of air travel and rail travel. With this, employees also get a 10-day PL (Priviledged Leave).
Guidelines for Cash Voucher Scheme
- – Cash payment will be given to the employees in lieu of LTC
- – Travel fare will be paid according to the grade of the employee
- – Payment of fare will be completely tax free
- – Three fare for the employee availing this scheme Will have to spend times
- – will have to spend the same as the payment for leave encashment
- – will have to spend before 31 March 2021
- – Employees will have to spend money on items that attract 12% or more GST
- – Only GST registered Services or goods have to be purchased from the vendor or merchant
- – Payment of services or goods will also have to be made in a digital way
- – GST receipt will be given while claiming travel allowance or holiday allowance.
Central employees’ salary will increase
In the Corona era, the Modi government had stopped the increase in the DA of the employees, but now this ban is going to be lifted soon. After the release of the AICPI (All India Consumer Price Index), it is almost certain that the estimated 4 percent DA will be increased. Also, the old DA will also be given as an arrear in salary. Overall, soon the government employees are going to bat.
