Government gives big relief to central personnel, increased deadline for depositing bills under LTC Cash Package Scheme

The central government has once again extended the deadline for submission of bills / claims for benefits under the LTC Special Cash Package Scheme. Earlier, the central government had fixed the deadline for submission of bills / claims under LTC scheme and setting up by the ministry / departments on 30 April 2021. However, due to the second wave of Corona epidemic, it has now been increased to 31 May 2021.

The Department of Expenditure (DoE) has released its Office Memorandum. According to this, there were queries to increase the deadline for submission and settlement of bills / claims. It was decided to increase the deadline due to the condition of corona epidemic across the country. However, any purchase for which the bill has to be deposited or settled should be before 31 March 2021.

Covid-19 Vaccine’s shortage will end! FDA and WHO approve import of approved vaccine in 2 days

The plan was brought in due to Corona epidemic

Last year in 2020, due to Corona epidemic it was not possible to travel, then the Central Government introduced a special plan LTC Cash Voucher Scheme for the current block 2018-2021 in lieu of LTC. Under the Income Tax Act, 1961, workers get tax benefit in the form of Leave Travel Concession (LTC) on the cost of commuting for two trips between four calendar years (January to December). Although this was not possible last year, then the government introduced LTC Cash Voucher Scheme, which also laid down certain conditions which are required to be fulfilled.

• To take advantage of LTC, you have to spend an amount equal to three times of it.
• This expenditure will have to be incurred for those goods or services which fall in the GST slab of 12 per cent or more.
• Payment must be in digital mode.
• The invoice should have the same name which is to take advantage of LTC Cash Voucher Scheme. However, it can also be taken in the name of those family members who are eligible for LTC.
• The expenditure should be from 12 October 2020 to 31 March 2021.