LTC cash voucher scheme: If you spend less, tax benefit will be lower

Under cash scheme, now extended to private-sector employees, 3x the LTC fare has to be spent

Private-sector employees will not be deprived of the benefit of the Leave Travel Concession (LTC) tax voucher scheme. The income-tax (I-T) department has now extended the tax exemption available under this scheme to non-central government employees too. Earlier this month, the department had announced that central government employees would be given cash vouchers this year in lieu of LTC fare.

No travel plans

LTC benefit has to be availed of by employees within a block of four years. Balwant Jain, investment and tax expert working with ApnaPaisa, says, “Due to the pandemic and the lockdown, people have been reluctant to