Under the LTC Cash Voucher Scheme, the benefit of income tax exemption will now also be available to the employees of the state government, government-owned companies and private companies. The Income Tax Department gave information about this on Thursday. The Central Board of Direct Taxes (CBDT) has issued a statement in this context stating that the benefit of income tax exemption on payment of maximum allowance of Rs 36,000 per person in cash on both sides as valid LTC to employees other than Central Government. will get. The Board has clarified that this exemption will be granted on meeting certain conditions.
The statement issued by CBDT said, “To provide benefits to other employees (to employees of sectors other than Central Government employees) … to non-central personnel on cash payment equal to LTC fare.” It has also been decided to give income tax exemption.
The Income Tax Department has tweeted in this regard saying, “Income tax exemption on cash payment equal to LTC rent is now available for non-central government employees as well. A detailed press release has been issued.
The benefit of income-tax exemption for the payment of cash equivalent of LTC fare now made available to the non-Central Government employees as well. Detailed Press Release issued:
The benefit of Income-tax exemption for the payment of cash equivalent of LTC fare now made available to the non-Central Government employees as well. Detailed Press Release issued: (1/2)https://t.co/UuBiRhXqo5 pic.twitter.com/aGAlAneAru
— Income Tax India (@IncomeTaxIndia) October 29, 2020
Non-central government employees consist of employees of state governments, public sector companies, banks and private sector companies.
CBDT has also explained the conditions related to taking tax exemption under LTC Cash Voucher Scheme. Under these conditions, employees will have to pay three times the LTC fare amount on the purchase of goods / services on which GST is 12 percent or more. They must purchase these goods or services from registered shopkeepers or service providers.
According to these conditions, payment will have to be made in a digital manner for the purchase of goods. The employees will get this benefit on purchases between October 12 to March 31, 2021 of this year.