The central government announced the LTC cash voucher program in October last year with the purpose of increasing consumption during the coronavirus pandemic. Last year, it was difficult for everyone to enjoy annual vacations, which made it more difficult for employees to apply for vacation travel concessions (LTC) from their CTC programs. The government initially announced the LTC cash voucher program for central government employees, but it was later extended to private sector employees in December. The plan makes it easy to claim LTC benefits without actual travel, but with many conditions attached. We’ve explained everything you need to know and found some ways to make the most of this benefit. Read on to learn more.
What is the government’s LTC cash coupon program?
In short, the central government’s LTC cash voucher program is an alternative to the travel requirements needed to claim benefits. Employees can purchase goods and services that have a Goods and Services Tax (GST) of 12% or more, and then request an invoice to be submitted to the employer. However, you must spend what is considered three times the LTC fare to use this plan. Under this plan, the highest fare considered to be LTC is Rs. 36,000 per person.
All purchases should be made through digital payment only, and the GST number and the GST amount paid with the goods should be clearly indicated on the invoice. Employees must make purchases between October 12, 2020 and March 31, 2021. Those who choose the new simplified tax system will not be able to enjoy the benefits of this plan.
How do I use the LTC cash coupon program?
If you have not received the holiday travel allowance in the past four years (2018-2021), you are eligible for this plan and the 10-day holiday redemption. You must require both to use the government’s LTC cash voucher program.
To take advantage of the government’s LTC cash voucher program, you need to spend three times the eligible price to purchase goods and services with a GST of 12% or higher. You can make multiple purchases on different e-commerce platforms. If your consumption is less than three times the LTC fare, the tax allowance will be appropriately reduced according to the total amount.
If you think that someone’s LTC fare is Rs. A total of 80,000 rupees is required (20,000 rupees per person for a family of four). 2,40,000 enjoy LTC and tax-free concessions. Although you will spend more money, you will end up with a substantial effective overall purchase price, because your employer will compensate you for part of the purchase cost based on the paid salary and LTC benefits.
What can I purchase to take advantage of this plan?
If you are eligible, you can buy almost anything online as long as the goods and services tax (GST) is 12% or above. If you are looking for a new flagship smartphone or are considering upgrading to a large-screen TV, now is a good opportunity to make the most of this plan. Almost all electronic products meet the conditions of the plan.
Here are some products you can buy (products that qualify for this program):
iPhone 12 If the price has been bothering you, now may be the best opportunity to snap up the iPhone 12. With the LTC cash coupon program, you will eventually get a substantial transaction, depending on your LTC earnings. If you are a person who likes to use a decent mobile phone for a period of time, then the iPhone 12 is enough to keep you stable for five years. Even if you choose to upgrade after one or two years, iPhone 12 will still have considerable value in the second-hand market.
Buy now: Rs. 79,899 (retail price 79,900 rupees)
MacBook Air with M1 chip
Use Apple booty to upgrade your work-from-home settings. The new MacBook Air model with Apple’s M1 chipset is priced at Rs. It’s 92,900 on Amazon. It also has a free EMI payment option (applicable to the LTC cash coupon program). The latest MacBook Air models are powerful and future-proof. What else do you want?
Buy now: Rs. 92,900
LG 43-inch 4K Smart LED TV
Maybe upgrading the TV is no longer Diwali. LG’s 43-inch 4K smart LED TV should be the right choice for most people who want to purchase products that meet the LTC cash coupon program. The TV has three HDMI ports and two USB ports. It runs on webOS and is supported by a quad-core processor.
Buy now: Rs. 34,999 (recommended retail price 52,990 rupees)
Sony Bravia 55-inch smart 4K LED TV
If you are looking for something bigger and don’t mind using a slightly older model, then the Sony 55-inch smart LED TV may be the perfect choice for your living room. The current price is Rs. This Sony TV is priced at 57,999 rupees (MRP is 1,09,900 rupees) and has all the features you want in any modern smart TV. It has three HDMI ports and three USB ports.
Buy now: Rs. 57,999 (MRP 1,09,900 rupees)
Looking for more suggestions and ideas? Check out some of the products we highly recommend in the “Guide” section above.