The voucher scheme for LTC was announced by the central government in October last year in an attempt to increase consumption during the coronavirus pandemic. Taking an annual vacation was difficult for everyone last year, making it difficult for employees to claim a holiday concession (LTC) from their CTC package. The government’s LTC cash voucher scheme was initially announced for central government employees, but was later extended to private sector employees in December. The scheme makes it easier to claim LTC benefits without actually traveling, but there are plenty of strings attached. We’ve explained everything you need to know and found some ways you can get the most out of it. Read on to learn more.
What is the LTC government scheme for cash vouchers?
In the simplest terms, the central government’s LTC currency scheme is an alternative to the travel requirements needed to receive benefits. Employees can purchase goods and services that charge 12 percent or more VAT and then ask to present the invoice to the employer. To take advantage of this scheme, you will have to spend three times the estimated price for LTC. The maximum allowable price for LTC under the scheme is Rs. 36,000 per person.
All purchases must be made only by digital payment methods, and the invoice very clearly indicates the GST number and the amount of GST paid with the purchase. Employees must make purchases between 12 October 2020 and 31 March 2021. Those who have opted for the new simplified tax plates will not be able to benefit from this scheme.
How can I take advantage of the LTC voucher scheme?
If you have not claimed holiday pay in the last four years (2018-2021), you are entitled to this scheme together with the collection of 10 days’ leave. You will need to request both to use the government’s LTC voucher scheme.
To take advantage of the government’s LTC voucher scheme, you will need to spend three times the allowable amount to purchase goods and services bearing a GST of 12 percent or more. You can make several purchases through different e-commerce platforms. In case you spend less than three times the long-term payment fee, the income tax exemption will be reduced accordingly on the basis of the total amount.
If the considered LTC tariff for a person is Rs. A total of 80,000 (Rs. 20,000 per person for a family of four), the person will have to spend a total of Rs. 2 40,000 to benefit from LTC and tax exemptions. Although you will spend more money, you will still get a decent effective total purchase price, as you will be reimbursed for part of the purchase by your employer, depending on the pay grade and LTC benefits.
What can I buy to take advantage of this scheme?
If you qualify, you can purchase almost anything online, as long as the product or service includes a GST of 12% or more. If you are looking at a new flagship smartphone or thinking of upgrading to a big screen TV, now is a good chance to make the most of this scheme. Almost all electronics meet the requirements for this circuit.
Below are some products you can buy (eligible for this scheme):
iPhone 12 If prices have kept you on the fence all this time, now is probably the best chance to get an iPhone 12. With the LTC currency voucher scheme, you’ll get a pretty sweet deal depending on your LTC preferences. The iPhone 12 is good enough to last you a solid five years if you’re someone who likes to stick to a decent phone for a while. Even if you decide to upgrade in a year or two, the iPhone 12 will still have decent value in the second hand market.
Buy now at: Rs. 79 899 (MRP Rs. 79 900)
MacBook Air with M1 chip
Upgrade your home setup with Apple swag. The all-new shiny MacBook Air model with Apple’s M1 chipset is sold on Rs. 92,900 on Amazon. Also available with free EMI payment options (eligible for the LTC cash voucher scheme). The latest MacBook Air is known to be powerful and ready for the future. What else do you want?
Buy now at: Rs. 92 900
LG 43-inch 4K smart LED TV
Maybe upgrading your TV should no longer be something for Diwali. LG’s 43-inch 4K smart LED TV should be almost suitable for most people who want to buy goods that qualify for the LTC voucher scheme. The TV comes with three HDMI ports and two USB ports. It runs on webOS and is powered by a quad-core processor.
Buy now at: Rs. 34,999 (MRP Rs. 52,990)
55-inch smart 4K LED TV Sony Bravia
If you’re looking for something bigger and don’t mind a slightly older model, Sony’s 55-inch smart LED TV may be perfect for your living room. Currently sold in Rs. 57 999 (MRP Rs. 1 099 900), this Sony TV is full of all the features you want for any modern smart TV. Available with three HDMI ports and three USB ports.
Buy now at: Rs. 57 999 (MRP Rs. 1 099 900)
Looking for more suggestions and ideas? Check out some of our highly recommended products in the “Guides” section above.