Good News : No Income Tax deduction on LTC cash voucher scheme

New Delhi, 5/2 In the budget, Finance Minister Nirmala Sitharaman has announced that the LTC (Leave Travel Concession) Cash Voucher Scheme for central employees will not be taxed.  The government had announced this scheme, giving relief to government employees last year in the Corona period. Under this scheme, employees will be given cash in lieu of travel allowance. The Finance Minister said that when the employee has money, he will be able to spend it, which will also benefit the economy.

All people got the benefit of the scheme – Coronavirus has greatly impacted the country’s economy. Crores of government employees had to be deprived of many facilities. On 12 October 2020, the government announced the cash voucher scheme while giving relief to the central employees. Earlier it was only for central employees. Later, private and state government employees also started benefiting from this scheme.

LTC kept outside the purview of tax- In the budget speech, the Finance Minister also mentioned that LTC (LTC) has been kept out of tax due to Corona transition. The government is sure that the government employee will get more money from it and he will also spend it.