Who can avail of profit below LTC money voucher scheme?

The authorities introduced the depart journey concession (LTC) money voucher scheme in October to spice up consumption by permitting workers to assert tax profit in opposition to payments of products and companies bought as a substitute of journey bills.

The final date for claiming the profit below the scheme is 31 March 2021. But there are circumstances to who can declare the profit.

Let’s test if you’re eligible for the scheme:

This scheme isn’t relevant to workers who’ve opted for the brand new tax regime, through which tax charges are decrease however you let go of most deductions and exemptions.

Also, the taxpayer shouldn’t have already exhausted the LTC exemption for the block (present block is 2018-21). Every taxpayer can declare depart journey allowance (LTA) exemption for 2 journeys in a block of 4 years.

The scheme was initially launched for presidency workers however was later prolonged to non-public sector workers as effectively.

To avail of the profit below this scheme, workers are required to submit payments for purchases made between 12 October and 31 March.

The quantity required to be spent is equal to a few 3 occasions the deemed LTC fare. Bills of products and companies with GST of ₹12% or above could be claimed below the scheme. The cost for the products/companies is mandatorily required to be made via a digital mode.

So, provided that you fulfill the above talked about circumstances will you be capable to declare the advantages below the scheme.

Do you will have a private finance question? Send in your queries at mintmoney@livemint.com and get them answered by trade specialists.

Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our e-newsletter.