New Delhi: In a bid to revive the tourism sector and consumer spending, the Central government had launched the Leave & Travel Concession (LTC) cash voucher scheme in October 2020.
The LTC voucher was initially aimed to offer tax exemption to taxpayers on their traveling expenses. However, with the second COVID-19 spoiling all travel plans, the government decided to offer LTC tax benefits on the purchase of goods and services to all eligible salaried taxpayers.
With the latest revision in the scheme, the government is allowing salaried individuals with LTA/LTC provisions in their salary to apply for tax exemption on the purchase of goods and services.
How to claim LTA voucher exemption in ITR?
Employees need to submit the bills of their purchases to their employers. On procurement of such bills, employers won’t deduct the salaries of eligible individuals based on the LTA/LTC bills submitted by the employees. Employees need to reflect the amount, that has been already saved by their monthly salaries, in Form 16.
LTA voucher exemption in ITR: Important things to know
For availing tax returns on such purchases, taxpayers need to ensure that the bought goods or services are at least 3 times the amounts that one would apply for to get tax concession in place of tax sops on travel tickets.
Taxpayers also need to ensure that their purchase of goods or services should be completed online. Moreover, individuals will be able to get tax rewards on transactions between October 2020 and March 31, 2021. Also Read: iPhone 13 launch on September 14: Check the changing designs of all iPhones
Another fact that taxpayers should note is that they need to buy goods and services that attract at least 12% or more GST to avail the tax benefits. Taxpayers also need to ensure that all the produced bills mention the GST number and the amount of GST paid. Also Read: Apple iPhone 12 series gets massive price cut on Flipkart: Check details here