LTC Cash Voucher Scheme 2024: Registration, Beneficiary Status

LTC Cash Voucher Scheme:-  The Finance Minister of our nation is set to introduce another initiative designed to benefit employees of both the Central and State Governments. This new program is titled the “LTC Cash Voucher Scheme for the year 2023.” We are here to provide you with comprehensive information about this opportunity, ensuring a seamless and hassle-free application process. We will outline the scheme’s objectives, and procedures, and present a step-by-step guide for applying to this new initiative introduced by the country’s Finance Minister.

• National SC-ST Hub Scheme

LTC Cash Voucher Scheme 2023

In the year 2023, the government will introduce the LTC Cash Voucher program, offering cash vouchers to both central government and state government employees. These vouchers will empower employees to redeem them for specified items as per the scheme’s guidelines. These items must have a GST rate of approximately 12%, and they should be non-food products. Furthermore, employees can only make their purchases using digital payment methods at GST-registered outlets.

• PM Agriculture Infrastructure Fund Scheme

Insurance Premium In LTC Cash Voucher Scheme

As you may be aware, the government introduced the LTC Cash Voucher Scheme on October 12, 2020. Under this initiative, beneficiaries are encouraged to make purchases of goods and services with a GST rate of 12% or higher to qualify for the scheme’s benefits. The government has relaxed the cash encashment requirement, allowing central government employees to pay insurance premiums for policies purchased between October 12, 2020, and March 31, 2021, to take advantage of this scheme.

This adjustment provides several advantages to employees, including tax benefits and government reimbursement of the premium paid. The LTC cash voucher scheme was launched with the aim of stimulating consumer demand. The ministry has clarified that for the purchase of items such as cars, employees need to submit a self-attested photocopy of receipts rather than the original bills to avail of the benefits.

• Indira Gandhi National Widow Pension Scheme

Under this scheme, employees can access the cash package without being required to opt for leave encashment, as the government has made leave encashment optional. Employees who are set to retire before March 31, 2020, must settle their vouchers and bills before their retirement date to benefit from the LTC cash voucher scheme.

If an employee chooses to receive only the deemed LTC fare without opting for leave encashment and spends three times less than the deemed fare, reimbursement will be on a pro-rata basis. It’s important to note that the payment of premiums for policies purchased before October 12, 2020, is not covered under this scheme.

Details Of LTC Cash Voucher Scheme

Objective Of LTC Cash Voucher Scheme

According to government authorities, the Finance Minister has introduced this scheme primarily because the funds initially allocated for government employees’ unused leaves, which were affected by the COVID-19 pandemic, can now be repurposed. With travel restrictions gradually easing, the government will issue cash vouchers to employees, intended as travel expenses.

These vouchers can be used by employees to travel to any destination of their choice. However, it’s important to note that the cash vouchers must be utilized before their expiry date on March 31, 2021. Employees have the flexibility to travel back to their hometowns or any other preferred location, with the travel expenses covered by these vouchers.

Benefits Of LTC Cash Voucher Scheme

The primary objective of the government in introducing the LTC Voucher Scheme is to provide Central Government employees with enhanced benefits, while also stimulating the economic circulation within the country. Under this scheme, employees are granted travel expense vouchers, with the requirement that they spend three times the value of the provided travel voucher on non-food items subject to a 12% GST rate.

For instance, if an employee receives 6000 rupees in LTC fare travel vouchers, they would need to expend 18000 rupees on eligible items. This approach not only bolsters the country’s economic activity but also contributes to the injection of additional funds into the economy.

The government announces the Leave Travel Concession (LTC) Cash Voucher Scheme for employees amidst the COVID-19 pandemic. #TransformingIndia pic.twitter.com/x8QtDx0xVW

— MyGovIndia (@mygovindia) October 13, 2020

Eligibility Criteria

Applicant must follow the following eligibility criteria while applying for the scheme:-

• The applicant must be a resident of India
• An applicant must be a working Central Government employee
• The applicant can also be a state government employee

Features Of LTC Cash Voucher Scheme

• This initiative will boost the country’s economic activity.
• Under this program, employees must expend three times the value of their travel expense voucher to qualify for the benefits.
• This spending should be on items and services with a GST rate of at least 12% or higher.
• To avail of the LTC cash scheme benefits, employees must furnish a GST invoice.
• Employees are required to make their purchases from GST-registered outlets using digital payment methods.
• The scheme does not cover purchases of food-related items.
• The government will provide the entitled fare, which employees must utilize before March 31, 2021.
• Both public sector and private sector employees can take advantage of this scheme.
• It is expected to bolster GST collection.
• The LTC cash scheme is anticipated to generate an additional demand of Rs 1 lakh crore in the economy.

Deemed LTC Fare

The number of LTC vouchers that the employees will get plus the value of these vouchers are as follows:-

LTC Cash Voucher Scheme Registration

There is no additional information regarding LTC Cash Voucher Scheme Registration available now. We will update each information as soon as the central government announces it.

LTC Cash Voucher Scheme (FAQ)

Q: What is the rule for the LTC cash package?