People opting for lower tax regime not eligible for LTC stimulus: Govt

LTC incentive expanded to employees of the private sector, the public sector units and state governments.

People who opted for the lower tax regime provided in the Budget for 2020-21 are not eligible for the new incentive package through leave travel concession (LTC), said the finance ministry clarified on Thursday.

"...as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime... shall not be entitled for this exemption," said the revenue department, which come under the ministry.

The department clarified this point while expanding the scheme to employees of the private sector, the public sector units and state governments.