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Monday, January 18, 2021

LTC paripatr 22 December 2020 pdf file

  LTC paripatr 22 December 2020 pdf file

LTC ના નવો પરિપત્ર  તા. ૨૨-૧૨-૨૦૨૦ 

In one of the recent fiscal stimulus packages, the finance minister announced the leave travel concession cash voucher scheme (LTC scheme), whereby deemed LTC fare may be claimed as exempt from income tax without any actual travel, provided the recipient employee incurs specified expenditure.

As per the new LTC scheme, an employee will be eligible for deemed LTC fare which will be exempt from tax, subject to the following conditions: (a) The employee should buy goods or services worth three times the deemed LTC fare between 22 December 2020 and 31 March 2021; (b) The money should be spent on goods or services attracting a GST of 12% or more from a GST-registered vendor; and (c) The payment should be made through digital mode. The new LTC scheme, which was first announced for central government employees was recently extended to non-central government employees, including private sector employees.

Why is the new LTC Scheme attractive?

Due to travel restrictions, an employee and his family may not be able to travel to claim the exemption under the existing provisions of the Income-tax Act, 1961. Hence, the new LTC scheme gives an option to the employee to spend on eligible goods and services instead of travelling to claim the tax exemption. An employee who avails the tax exemption under the new LTC scheme will be deemed to have availed one journey in a block of four calendar years.

પરિપત્ર PDF અહિંથી ડાઉનલોડ કરો

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