Can you enjoy the benefits of the LTC Cash Voucher if the purchase is made in the name of the family? Here’s Everything You Need To Know | Personal finance news
New Delhi: The Modi government authorized the payment of cash compensation equivalent to the SLD rate to central government employees subject to certain conditions.
Prevail LTC voucher system benefits, employees are allowed to submit multiple invoices to receive the benefits.
The Ministry of Finance has released clarifications regarding requests received for the equivalent of a special cash package instead of the travel concession fare for central government employees during the 2018-2021 block.
Consult the series of FAQs published by the Ministry of Finance on the LTC payment voucher program
1. Does the employee need to take time off to benefit from this LTC cash voucher program? If an employee is required to take a trip
A person does not need to take time off for this purpose or undertake a trip. This is a program that replaces LTC trips.
2. If a particular LTC intended to be used for the plan has been partially used by you or by family members, if this plan is available and to what extent?
This regime is “applicable to the LTC tariff not used during the block year, as mentioned in the OM of 12.10.2020.
3. If an employee has already exhausted their prescribed LTC leave cashout limit, will they be eligible for the plan? If a Man employee only benefits from the SLD tariff without claiming the collection of leave
An employee can take advantage of this program using the applicable SLD rate without cashing out leave. The expenses must be in accordance with the ratio prescribed for the LTC rate.
4. In accordance with the plan, an amount of up to 100% of vacation cash and 50% of the value of the deemed rate must be paid as an advance to the employee opting for the plan. It was also indicated that the non-use / under-use of the advance should be accounted for by the DDOs in accordance with the scope provisions relating to the SLD advance. If an employee spends only the amount of the advance and makes a claim, how will that claim be resolved?
If, according to the calculation suggested in OM n ° 12 (2) 2020-E.IIA of 12 October 2020, the reimbursable amount is less than the advance withdrawn, this would be treated as an under-use. However, after calculating the claim, the amount of the balance, if any, can be recovered from the employee.
5. Newly joined government employees are entitled to three hometowns and one anywhere in India within a four-year block. How will this be regulated?
The employee can use any of the available LTCs in a block year.
6. Under LTC special provisions, an employee, regardless of eligibility, can travel by air to places like Andaman & Nicobar. MK and North East under all tariffs in India. In this case what will be the deemed tariff?
The deemed rate was calculated based on an employee’s normal eligibility and special packages would not be applicable for this plan.
7. Does a single invoice for the purchase of goods or services need to be submitted or can multiple invoices be submitted?
Several invoices are accepted. The purchase must have been made from the date of issuance of the OM until the end of the current financial year. Purchase must include 12% GST and above and payment must have been made digitally.
8. If there is a prescribed format for applying for this program.
There is no prescribed format. A simple request expressing the desire of the employee to take advantage of the plan, if an advance is required for this purpose, the same must be mentioned.
9. What items are eligible for reimbursement under this scheme?
All goods and services that attract 12% GST and above would be eligible. Invoice with GST details must be submitted and payment must have been made digitally.
10. An employee with four family members eligible for LTC wishes to benefit from this facility for less than 4 members. Also, he wants to benefit from LTC for the rest of the members later. As answered to the question to S.No. 2, an employee can benefit from the plan in part, that is to say from the LTC of a part of the eligible family.
Since this is an optional program, if a family member’s LTC tariff has not been used for this purpose, those members may benefit from LTC subject to extended instructions under LTC rules. .
11. An employee incurs the expenses by 31/3/2021 at the latest on the basis of the invoice. Actual product or service received in April 2021.
Reimbursement is based on the production of an invoice with GST details. As far as possible, the complaint must be filed and settled well before March 31, 2021 to avoid any last minute rush and the resulting lapse.
12. For digital payment, an employee uses the credit card of their spouse or any member of their family.
It is specified that the invoice that is submitted for reimbursement under the plan must be in the name of the employee benefiting from the plan.
13. Can services like interior decoration and telephone bills be included?
Any service with a GST component of more than 12% is authorized.
14. A limit on the number of transactions?
As far as possible, the number of transactions can be kept to a minimum in order to avoid any difficulty / delay.
15. Is it allowed to buy on an e-commerce platform?
Purchases on the e-commerce platform are also allowed provided the relevant invoice / details are submitted.