“Queries have been received in this department to extend the date for submission of bills/claims and settlement beyond 30th April 2021. Keeping in view of the situation existing due to Covid-19 pandemic, it has been decided that submission of bills/claims may be entertained and settled by Ministries/Departments not later than 31st May 2021,” stated the office memorandum.
However, do keep in mind that, “Payment for the purchases should have been made not later than the due date, i.e. 31st March 2021,” it stated.
Click here to find out how central government employees can avail benefit under LTC cash voucher scheme
The LTC Cash Voucher scheme was announced by the Finance Minister Nirmala Sitharaman in October 2020 to boost consumer demand and to provide tax benefit to individuals who are unable to claim the usual LTC tax benefit due to covid-related travel restrictions. By opting for this scheme, government employees can purchase goods and services in lieu of the tax-exempt portion of the Leave Travel Concession/Leave Travel Allowance (LTA/LTC). He/she can claim tax-exemption on the travel fare encashed if the amount is spent by satisfying specified conditions.
To claim the benefit under the scheme, an individual is required to fulfil the following conditions:
i) Spend three times the amount of deemed LTC fare on the purchase of goods/services attracting GST of 12% or more;
ii) Purchases must be made during the period between October 12, 2020 and March 31, 2021.
iii) Payment for the purchases must be made through a digital mode including cheque, UPI, etc.
iv) Invoices must be furnished to an employer containing details of the vendor, GST number and GST amount paid. Invoices in the name of family members can also be submitted.
Initially, the scheme was announced for central government employees, however, later via a press release, the scheme was extended to private sector, PSU and state government employees.
Do keep in mind that the benefit of the LTC Cash Voucher scheme is available in the old tax regime. If an individual opts for the new tax regime, then tax benefit under the scheme will not be available.