Explained: Here’s what the Centre has proposed in its LTC scheme

7th Pay Commission Latest News: As per updates, the Centre is providing different benefits under the scheme to its employees.

7th Pay Commission Latest News: Keeping in mind the ongoing festive season, the Central government has announced giving travel concession cash vouchers to Central government employees.

As per updates, the Centre is providing different benefits under the scheme to its employees.

However, there was some confusion about this scheme among employees, but the Centre now has cleared the air around it.

Without understanding the scheme properly, the government employees were confused about whether they need to take leave to avail of benefits under this scheme or not. Moreover, the employees was also confuse about whether they need to attach travel bills to claim the benefits of the cash voucher or not. However, the department concerned under the Finance Ministry has made it clear that the employees will neither have to travel nor take leave for traveling to avail of the benefits of this scheme.

As per the latest clarification from the Centre, employees are giving this special package in place of leave and travel allowance. Employees can spend the amount given under this scheme as per their choice.

In general, the Central government employees get the benefit of Leave Travel Allowance (LTA) only when they travel and submit the bills to claim it. If the employees decide not to travel, they do not get the full benefit of LTA. However, keeping the difficulties faced by the employees due to the coronavirus pandemic, the Centre has decided to give them a cash voucher under the LTA scheme. The move is likely to provide relief to the employees in these difficult times.

Under this LTS Cash Voucher Scheme, the employees can now purchase goods and services thrice the fare of rail and airfares in place of leave. Moreover, the employees can now avail of monetary benefits under this scheme without traveling and can also save money in tax on purchases made with this amount. However, the employees can spend the amount received under this scheme on only goods and services incurring tax of more than 12 percent.

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