Big Relief for Central Govt workers! No tax on THIS quantity – verify particulars

Image Source : PTI FILE Big Relief for Central Govt workers! No tax on THIS quantity – verify particulars
In a significant aid for lakhs of salaried class individuals together with Central authorities workers, the Centre has stated that its staffers is not going to should pay revenue tax on the quantity obtained in opposition to the go away journey concession (LTC). In Budget 2021, Finance Minister Nirmala Sitharaman has proposed to supply tax exemption on money allowance in lieu of Leave Travel Concession (LTC). 

The scheme was introduced by the federal government final 12 months for people who had been unable to say their LTC tax profit on account of covid-related restrictions on travelling. The Centre has prolonged this revenue tax aid for all salaried taxpayers for the four-year cycle of 2018-21.

“In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring specified expenditure,” Nirmala Sitharman stated in her Budget speech.

On October 12, the scheme was first introduced for presidency workers. However, later it was prolonged to cowl non-government workers as nicely.

Also Read: seventh Pay Commission: Good information for Central govt workers! Centre prone to announce 4% DA hike

Announcing the aid for all salaried taxpayers Nirmala Sitharman stated in her finances speech, “In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring specified expenditure.”

A authorities worker, choosing this scheme, shall be required to purchase items or companies value 3 occasions the fare and 1 time the go away encashment earlier than thirty first March 2021. Also, solely digital transactions are allowed and GST Invoice should be produced.

Also Read: Govt distributing Rs 75,000 every to all Indians? Here’s the reality
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