Want to save income tax? So do this remedy

 Want to save income tax? So do this remedy

The central government had on October 12 announced to give income-tax-free cash vouchers to its employees in lieu of LTC. Employees can use this voucher to purchase products that have a GST rate of 12 percent or more. The initiative is aimed at boosting consumption in the Corona-era sluggish economy.

Want to save income tax? So do this remedy

Everyone wants to save income tax in the face of rising inflation. The LTC Cash Voucher Scheme can be the most effective way to save your income tax. Everyone can now take advantage of the LTC Cash Voucher Scheme. From government employees to employees working in private companies can also take advantage of this scheme of the government. This plan is the best option to save income tax.

What is LTC Cash Voucher Scheme?

Under the LTC Cash Voucher Scheme, there is a provision to give tax free cash vouchers to employees in exchange for LTC.

1) Employees will have to spend a lump sum of LTC rent amount on goods and services on which GST rate is 12% or more.

2) These goods or services have to be purchased only from registered shopkeepers, service providers, otherwise, you will not get the benefit of this scheme.

3) Money will have to be paid from digital platform between October 12, 2020 to March 31, 2021.

4) He has to take a voucher with full details of GST number and amount.

5) This exemption for employees will be applicable in respect of reimbursement of LTC applicable during their 2018-21 period.

Suppose you have 4 members in your family, if you can get 20 thousand rupees for each person

Total LTC fare = 20,000 x 4 = 80,000 rupees

Total cost = 80,000 x 3 = 2,40,000 rupees

That is, only if you spend Rs 2.40 lakh will you be able to avail the benefit of LTC Cash Voucher Scheme and get tax exemption. But if you spend only Rs 1.80 lakh, it will benefit you at 75 per cent of the total LTC fair, i.e. Rs 60,000.

Private company employees will also get a discount

The Central Board of Direct Taxes (CBDT) said in a statement that employees other than the central government would get income tax benefit on payment of a maximum cash allowance of Rs 36,000 per person on both sides in the form of valid LTC. This waiver will be subject to certain conditions.

સંપૂર્ણ માહિતી ગુજરાતી માં વાંચવા માટે અહી ક્લિક કરો

The CBDT said that in order to benefit other employees, it has been decided to waive the cash tax parallel to the LTC rent and also to give exemption in income tax to those who are employees of the central government. Non-central employees also include employees of state governments, public sector undertakings, banks and the private sector.

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