Central government employees can redeem the premium paid for purchasing an insurance policy from 12 October 2020 to 31 March 2021 under the LTC Cash Voucher Scheme. The Department of Expenditure under the Ministry of Finance has released the third set of Frequently Asked Questions (F&Q). In this, the ministry also clarified that employees can submit self-attested photocopies of the bill instead of the original bill to take advantage of this scheme on the purchase of items like cars.
The Department of Expenditure said that premium payment of existing insurance policies will not be made under LTC Cash Voucher Scheme. Bills or vouchers have to be submitted on or before 31 March 2021 to get benefits under the scheme. The government announced the LTC cash voucher scheme on October 12, for which employees are required to purchase goods or services with a GST rate of 12 per cent or more to get the benefit.
Also, such purchases are to be paid through digital mode, check or demand draft or NEFT or RTGS. Till now, employees used to get the benefit of holiday travel discount only on traveling.
LTC Cash Voucher Scheme: Can take advantage of LTA even without traveling
The scheme was announced on October 12
On October 12, the Finance Ministry announced a cash voucher scheme for LTC in lieu of LTC. Under this, LTC can be availed even without traveling. Before this, the workers had to travel and had to pay their bills to take advantage of it. Under the scheme, you can also shop in the name of your spouse or other family members and take advantage of the government’s new scheme.
Source: www.financialexpress.com
