Income-tax concession on LTC for both central and state government employees!
Posted on: 30/Oct/2020 12:21:57 PM
In very welcome news for the State& Central government employees, it has been announced that the Leave Travel Concession Allowance (LTC – when the employees are to go on a vacation trip with their families once in a year by availing this LTC allowance) will be exempted from Income-Tax earnings!
The Central Government has initiated this as one of the measures to revive the country’s economic growth as well as increasing the availing of purchasing more consumer products and services.
The system of offering the TC allowance in the ‘cash voucher’ format was recently announced for the central government employees. Now, this concession from |Income Tax on LTC has been extended for many other categories of employees.
In a notification released by the Central Government Department of Income Tax, it is mentioned:
“The Leave Travel Concession Allowance (through the ‘cash voucher’ system)for the State Government employees, and the employees working under the private and public sector companies for undertaking travel with their family members once a year is being exempted from the Income Tax. This concession will be valid for a maximum TC of Rs.35000.“
It is further mentioned that this concession from IT is given under the various conditions existing already.
Due to the prevailing situation of the spread of the raging coronavirus pandemic and the subsequent lockdown impositions throughout the country as a preventive measure against this spread, the lifeline and the economy of the citizens and the country have been hugely affected and especially, tourism, hotel stays, etc., have been affected quite severely! This concession for LTC has been announced as a measure to revive this sector,
This LTC cash voucher may also be obtained by buying products online at 3 times of the LTC allowance. Note that this can be availed for the Financial Year 2020-21.
