Good News For Non-central Govt Employees, They Can Also Avail Centre’s LTC Cash Voucher Scheme

7th Pay Commission Latest Update: Keeping the ongoing festive season and the extra spending in mind, the Union Ministry of Finance on Thursday has extended the benefits of LTC cash voucher scheme to non-central government employees as well. Earlier, only central government employees were availing the benefits. Also Read – 7th Pay Commission Latest Update: Good News For 2 Lakh State Govt Employee as Haryana Announces Festival Advance For Them

“In order to provide the benefits to other employees, it has been decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-central government employees also,” the Finance Ministry said in a statement. Also Read – 7th Pay Commission Latest News: Tamil Nadu Freezes DA Till July 2021, Suspends Earned Leave Of Its Employees For One Year

As per the notification issued the Centre, the employees of state governments, state-owned enterprises and private sector will now avail the LTC cash voucher scheme. Also Read – 7th Pay Commission Latest News: Maharashtra Govt to Put on Hold DA, LTC of 12 Lakh Employees For Two Years

Even though the travel has been restricted during the pandemic, the employees of various state governments can also avail the cash equivalent of entitled LTC fare and leave encashment without travelling anywhere. Moreover, the employees can purchase goods and services in lieu of the tax-exempt portion of the LTC or LTA.

The Finance Ministry in the statement said that the payment of cash allowance, which is subject to maximum of Rs 36,000 per person as deemed LTC fare per person (round trip) to non-central Government employees, shall be allowed income-tax exemption subject to fulfilment of certain conditions.

As per the latest LTC voucher scheme, the employer will reimburse the travel cost of the family of the employee to any place on a holiday or to employees home town. However, the reimbursement of the travel cost is subject to the designation of the employee. Interestingly, this LTC is exempted from the income tax act subject to certain conditions. As per the rules, the exemption is allowed for only two travels within a block of four years.