gave one more option. (i) Debit Voucher: Debit vouchers are the documentary evidence of cash payments. Anthony, From buyer side, there is nothing required except submitting valid bills and claiming the LTC. There are many such leeways like you can pay Life insurance on discount, use multiple ways to save while making payment. A cash voucher is a voucher that is exchangeable for cash. What is the LTC Cash Voucher Scheme? Every electronic you buy from amazon comes under 12% GST or higher. Employees also need to ensure they have NOT opted for concessional tax regime earlier before submitting such application for claim. Due to Covid pandemic, there are travel restrictions and hence employees are not able to travel and claim the LTC. As you submit investment proofs this year, don’t forget to claim maximum LTC & save taxes. Here is an example about the calculations for them. M&S vouchers. », 20+ Future Business in India for 2025 | Future Business Ideas for 2030 and beyond. This year, Govt has given some special concessions, & you must take benefits of those! The government has announced the LTC Cash Voucher Scheme for Central Government employees as well as for non-central government employees including employees of private sectors for the LTC block period of 2018-2021 to provide for tax exemption on LTA/LTC amount received in lieu of actual travel. What is this LTC Cash Voucher Scheme? The Leave Travel Concession (LTC) cash Voucher scheme has been notified by the government in Budget 2021. 4. Employees need to spend 3 times of the value of the deemed LTC fare on purchase of goods and services which carry GST of 12%. The LTC cash voucher scheme is introduced by the government in order to boost consumption in lieu of actual travel. 4. Also Read: Rakesh Jhunjhunwala Low Priced / Penny Stocks – Should you invest? LTC cash voucher Scheme 2020. Basic source document for purchase voucher is purchase bill or purchase invoice. The 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. The LTC Cash Voucher scheme aims to provide other expenditure options to the central govt. This scheme is an alternative to the Leave Travel Concession Tax Benefit [ LTC / LTA] that is currently available in income tax. Cash vouchers are nothing but an accounting document that is generally used to record petty cash payments and also support payments of small amounts of cash to the employees in a particular organization or any business under the petty cash systems. Petty cash funds are small amounts of money, usually between $100 and $250 US Dollars, set aside for incidental purchases to avoid writing a check or using a company credit card. The voucher is typically purchased from an office supply store. How this would benefit employees and Govt of India? Govt of India has earlier announced about LTC (Leave Travel Concession) Cash voucher scheme for central government employees. No TDS would be deducted on the reimbursement of LTC. The LTC cash voucher scheme is introduced by the government in order to boost consumption in lieu of actual travel.. Benefits Of LTC Cash Voucher Scheme. All the payment must be made through a digital mode which includes cheque, UPI, debit/credit card etc. If I purchase goods worth 100000+ 12000 GST How much reimbursement will take place. Giving disaster affected people cash is a growing and critical part of humanitarian action with the potential to drive transformational change in the architecture and ways of working for aid agencies. But, will the purchases on EMI basis will also qualifty for LTC Cash Voucher Scheme? An employee who opts for this scheme, will be required to buy goods/services worth three times the fare and one time the leave … Spend the money on buying items attracting GST of 12% or more from GST registered vendor and purchase must be in digital mode GST Voucher – Cash 1. If you are part of private sector companies, you might be excited about this scheme. With less than one and a half months to go for the financial year's close, the companies should explore the LTC scheme backed by legislative reforms to give employees adequate relief. They need to go for four wheelers / electric vehicles where it can meet 12% GST criteria. How to watch IPL 2020 for FREE or with Special Recharge Plans? If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter. These are commonly prepared by accountants on the basis of supporting vouchers and approved by a different individual. 200 Good Small Scale Business Ideas with Low Investment, 50 Small Manufacturing Business Ideas with Low investment. A voucher helps in recording expenses or liability and further helps in its payment. If vouchers are used for all payables, their totals can be aggregated to determine the total amount of accounts payable outstanding. The COVID-19 pandemic that followed us into 2020 with nationwide lockdown disrupted significant parts of people's lives—disrupting the nation's economy, including government and private sectors. The plan was to convert ‘cash only, one passenger only’ bookings first. Thank you for your reply sir, LTC Cash Voucher Scheme – How Private sector employees would get benefitted? Amazon Tax Benefits on Mobiles, Appliances, TVs & more - In Lieu of Leave Travel Concession Benefit, income tax exemption under the Income Tax Act, Netflix's New Plan Out in India: Details Inside, Beat the Heat with Top 10 Best ACs in India in 2021 with Buying Guide and Reviews, Asus ROG Phone 5 Gaming Phone Launched in India: Know About the Specification, Feature and Price, Why am I not receiving OTP? In the series of FAQs on the LTC Cash Voucher Scheme for availing tax exemption on LTC without actual travel, the government has issued LTC Cash Voucher Scheme FAQ-4 on 10.03.2021 to clarify 5 new queries on the scheme just before a few days of the due date to avail the scheme.. An employee is expected to meet the following conditions to avail of the benefit under the scheme: The employees also have an alternative to submit the invoices in the name of family members as well. With a Petty Cash Voucher, it is quite easy for the employees to save the record of all the expenses and payments made with Petty Cash. LTC cash voucher Scheme 2020. When bank receive any amount from any customer then debt cash voucher is used means that they are used to record cash payments .This is always white in color.. i-movo is the UK's leading secure digital voucher system. When an individual makes a cash payment to a company, he usually receives a hand-written receipt as proof of payment. This includes a one-off GST Voucher – Cash Special Payment of $200, and GST Voucher – U-Save Special Payment with utilities rebates between $120 to $200. Petty cash voucher definition — AccountingTools. The scheme aims to boost the economy of the country by leave travel concession tax-free benefit for various types of purchases subject to certain conditions to the workers of the central government as the scheme is a central government scheme. a tour operator) which you neither arrange nor facilitate, then you will have no … This receipt is necessary because cash is not as auditable as checks or credit card payments. Make sure you affix a revenue stamp for cash payment more than Rs.5000/- . Under the LTC cash voucher scheme, government employees can purchase goods and services in lieu of the tax-exempt portion of the LTA and claim tax-exemption if the amount is spent, meeting specific conditions during 2018-21. Examples of non-cash vouchers are: Goods sold on Credit; Sale of Fixed Assets or Investment on Credit; Writing-off depreciation or Bad Debts, Returns Inward, etc. At the beginning of an accounting period , there should be a certain amount of cash in the box and no vouchers (which should have been removed as part of … For … The LTC Cash Voucher Scheme Circular for the central government employees has been released and the private sector employers can now devise their own structure based on the guidelines provided. Who is eligible for the LTC Cash Voucher Scheme? The LTC cash voucher scheme is a new initiative by the Indian Government to incentivise consumption. In this case, the cash/bank will be credited and there will be an outflow of funds. and expected to provide a copy of invoices to the employer containing the GST number of the vendor and the GST amount paid. It is necessary to note that the budget has clarified that the scheme is applicable only up to 31 March 2021 against an extension's expectations. Under the LTC Scheme, employees can purchase goods and avail services that attract a GST (Goods and Services Tax) rate of 12% or more instead of travel in the current Block of 2018-21. 2) If the employee spends Rs 180,000 only, then one third of this would be Rs 60,000 would be eligible for deemed LTC fare + income tax exemptions. In this scheme, the employees will receive an equivalent sum of their eligible LTC fare as a cash payout that is exempt from tax. Create your customized alerts for your favourite product and be assured for the best deals at the right time, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7403898, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7404665, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7405226, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7406637, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7407976, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7408736, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7408737, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7408738, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7412848, https://www.desidime.com/news/things-you-should-know-about-ltc-cash-voucher-scheme-towards-tax-exemption-in-lieu-of-lta-for-fy-2020-21?page=1#post_7414037. To acquire this cash pay-out of Rs. Partial Withdrawals of PPF – Eligibility and Rules in 2021, Union Budget Highlights 2021-22 – Key Takeaways, Suresh KP is the Founder of Myinvestmentideas. Connect with your social account for easy signup and faster login. When an individual makes a cash payment to a company, he usually receives a hand-written receipt as proof of payment. Synopsis Government has announced the LTC Cash Voucher Scheme for the central government employees which was later extended to the private sector employees as well. Finance Minister Nirmala Sitharaman launched the Scheme that will help in creating demands. The income-tax exemption on expenses incurred under the LTC Cash Voucher Scheme is legislated in the … LTA is a type of allowance that the employer provides to his employee traveling on leave from work to cover his travel expenses. Sign up now and get a welcome bonus of 50 dimes! LTC Cash Voucher Scheme – Guidelines for 2020-21. If your employees are being given non-cash vouchers by a third party (i.e. But, will the purchases on EMI basis will also qualifty for LTC Cash Voucher Scheme? Mr A is eligible for an AC tier-2 train ticket to a destination of his choice across India. A petty cash voucher is usually a small form that is used to document a disbursement (payment) from a petty cash fund. community and earn 1 dime for every deal This could  repetition from some of the above points. Indeed, the LTC scheme is a welcome move toward improving the existing LTA exemption and incentivizing consumption. So for your purchases, Basically if you r in 30% bracket u will save 9% of 12%  tax paid. This type of a voucher basically analyzes a business transaction from the accounting standpoint and is used for recording purposes. Your email address will not be published. ICICI Pru iProtect Smart Term Plan vs HDFC Life Click 2 protect 3D plus – Which is better? Citizens may check their eligibility details and update their payment instruction at the GST Voucher … LTC Cash Voucher Scheme requires you to spend 100% of leave encashment and 3 times of fare amount. A voucher is created following the receipt of an invoice from a supplier. Here's Your Answer. What is the LTC Cash Voucher Scheme? The government has issued various clarifications in the form of FAQs on LTC Cash … Furthermore, This is a complex area which travel industry members will come across often either as employers or as the payers of vouchers or benefits to others’ employees. Readers are aware that income-tax exemption on LTA paid to employees including private-sector employees is available only if the employee actually travels in India and produces the corresponding documentary proof of travel. Acknowledging the challenging economic environment and to provide individuals with an incentive to use their unclaimed LTA amounts and boost consumer demand, the government has issued relaxed guidelines by launching the LTC Cash Voucher Scheme. The employees also can submit a self-attested copy of the invoices if they want to retain the original documents for their future reference. Your email address will not be published. LTA is an essential element of the employee's salary as it is acceptable for income tax exemption under the Income Tax Act, 1961. A Payment voucher is used to record a payment of cash or cheque. In accounting, all transactions are properly documented as evidence of the financial trail. Govt of India expects that this would boost the economy with increased spending + tax income received through GST, thought they provide income tax benefits. 24,000. The purchase of such goods/ services can be done through multiple bills and the they can be from online ecommerce purchase too. Here is how these employees can avail the tax benefit under the LTC scheme. Due to COVID-19 it was impossible for anyone to travel anywhere so the Govt of India have come up with LTC Cash Voucher scheme 2020 – 2021 under which the Central govt/state govt/private sector employee can avail the LTC Cash Voucher which will replace the actual travel which was earlier required to avail the tax benefits. Earlier GOI has indicated this is applicable to only Central Government employees. As the employees may have several queries regarding the scheme, the government has put 15 faqs to resolve the employees' queries. Due to Covid pandemic, there are travel restrictions and hence employees are not able to travel and claim the LTC. Cash Memo is a source document used in case of a cash transaction between the seller and a buyer.. If employee spends any amount over and above this, they would be eligible for this Rs 80,000 as full deemed LTC fare + income tax benefit. It cannot be claimed in the tax return directly. 16,000 as leave encashment, his total spend should be Rs. Such purchases can be anything: books, clothes, electronics, Netflix subscriptions- anything that has 12% or more GST & bought between 12th October to 31st March. LTC is the amount paid by the employer to the employees to travel in India. central govt employees, state govt employees, psu sector employees and private sector employees. The GST Voucher is given in three components - Cash, Medisave and U-Save. LTC is Leave Travel Concession / Leave Trave Allowance. If the employee is also eligible for a leave, that amount must also be spent along with this amount. Due to covid-19 pandemic, there are travel restrictions, hence Govt of India has announced that one can claim this LTC even without travelling with some terms and conditions. 6,000 per person. A receipt voucher is a type of voucher which is typically issued by a certain business or an organization upon receiving payment in cash or check during a business transaction. They are further subdivided into two, cash and non-cash vouchers. Under the LTC cash voucher scheme, the government employees can opt to receive cash equivalent to the full round trip fare and leave encashment. No paid Advertisement or promoted deals on Home page. Recently the Central Government announced a modification to the existing Leave Travel Concession or LTC benefit available to the Central Govt. Current block is 2018 to 2021. Whether the full and final settlement of the bills pertaining to LTC Cash Scheme is also to be ensured by 31st March, 2021, without any scope of spill over to t 4th FAQs on LTC Cash Voucher Scheme Whether the full and final settlement of the bills pertaining to LTC Cash Scheme is also to be ensured by 31st March, 2021, without any scop However, there are several terms and conditions applicable here. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com, LTC Cash Voucher Scheme – Guidelines, Eligibility and Calculations. 88,000, and the benefit will be approximately Rs. New Delhi: The government on October 12 announced the LTC cash voucher scheme under which employees can purchase any goods or services with a GST rate of 12 per cent or above to avail the benefit.The payments for such purchases have to be made via digital mode or cheque, demand draft, NEFT/RTGS. What is the LTC cash voucher scheme? 2 Lakhs . LTC Cash Voucher Scheme for Central Government Employees: In a new Office Memorandum, the Department of Expenditure (DoE) under the Ministry of Finance has issued new clarifications British Airways has begun the process of converting Future Travel Vouchers for cash tickets into standard eVouchers. Cash Memo. Leave Travel Allowance LTA is an allowance that your employer can give you. Mr A will be eligible to get a round-trip fare of Rs. The petty cash voucher should provide space for the following: Date. These purchases should be done only from GST registered vendors or service providers. They are only exchangeable for goods. As long as you bought something with 12% or more GST & paid by debit/ credit card or UPI, you can claim it under LTC. Best Investment Plans and Money Saving Ideas, LTC cash Voucher Scheme – Guidelines, Eligibility and Calculations. Get more Personal Finance News and … in-kind food, cash, vouchers or a combination of all three. + and ✝️ Karma given . Govt wanted people to spend/ buy more as the economy was at a pause. This amount is also extended to other goods with 12% Gst rate on Pharmacies, Supermarkets and more by sharing medical bills and invoices. LTA is an essential element of the employee's salary as it is acceptable for income tax exemption under the Income Tax Act, 1961. The scheme aims to boost the economy of the country by leave travel concession tax-free benefit for various types of purchases subject to certain conditions to the workers of the central government as the scheme is a central government scheme. Distinction Between a Cash Book and a Cash Account: In fact, Cash Book is a substitute for a Cash Account. if you have LTA for Rs 50,000, you need to spend Rs 1.5 Lakhs before 31 March, 2021 by way of purchasing goods / services which have GST by 12% from registered GST vendor/service provider. Usually, it is mentioned as a yearly component but will be paid monthly wise. might not be sufficient. My employer denied LTC claim during final submission in last month as I’ve not opted for LTA during FY start. Non-Cash or Transfer vouchers are the documentary evidence of non-cash transactions. The … However, the government indeed gave an incentive to this and issued the LTC Cash Voucher Scheme. I wanted to ask if in addition to the seller’s GST number on the GST invoice, should the GST number of the buyer’s(employee’s) office be entered for Input tax credit. The LTC scheme wants employees to spend three times the amount of assumed LTC expense on purchasing goods/services, having a GST rate of 12% and above. In such case they need to spend at least Rs 6 Lakhs. employee is planning to spend Rs 2.4 Lakhs, they would deem LTC fare + income tax exemption to the tune of Rs 80,000 (33%). If the employee spends less than 3 times of the total value compared to deemed LTC fare, their income tax exemption would be reduced proportionately. 3) LTC Cash voucher scheme computation for central government includes leave encashment too. E.g. It acts as a proof for ‘cash sales’ made by a business. Government of India has indicated that central government employees would be eligible for Leave Travel Concession (LTC) Cash Voucher Scheme couple of weeks back. For a family of four, this will come to Rs. If you bought goods of 1 Lacs, you could claim 33% of it( 33K). The LTC Cash Voucher Scheme was announced by Finance Minister Nirmala Sitharaman on the 12th of October 2020.. With the first full-year economic contraction in decades, there is a risk that India might slip into recession for a while. Assume Mr A is an employee of a corporate sector under the LTA scheme. This will allow the voucher to be used online, unlike a Future Travel Voucher. To control this situation, the government decided to stimulate consumer spending and announced two incentives. Now GOI has confirmed that the LTC voucher scheme would be applicable to all employees i.e. This way they would get this Rs 50,000 as tax free reimbursement. Cash receipts typically require a formal receipt voucher as proof of payment. The government also announced giving out cash vouchers to central government employees this year in lieu of leave travel concession (LTC) fare which could be spent only on buying non-food GST-rated items. 3. 3) If the employees have an LTA amount claim of Rs say Rs 80,000, then spending Rs 2.4 Lakhs itself would be appealing task. Over the past five years, WFP’s use of cash and vouchers has grown rapidly, across crises, geographical areas, affected populations and economies. The LTC scheme guidelines for private-sector employees provide a maximum benefit of Rs 36,000 per person. Non-utilization / under-utilization of advance. It is a small form of vouchers which is often used to record transaction from the petty cash fund. Non-cash vouchers. Here are simple guidelines for the private sector employees. They are also called source documents as they help in identifying the source of a transaction. If you are in 30% tax bracket, you get ~10K tax benefit on 33K. He is NISM Certified - Investment Adviser. The government introduced an … The employee would get benefitted by way of income tax, which is like discount of expenditure. Government has announced the LTC Cash Voucher Scheme for the central government employees which was later extended to the private sector employees as well. For the gift vouchers to be considered as remuneration in kind, the vouchers must not be of legal tender in currency or convertible into cash, e.g., money order or cash voucher … employees. The permanent GST Voucher scheme was introduced by the Government in Budget 2012 to help lower-income Singaporeans. New Delhi: The government on October 12 announced the LTC cash voucher scheme under which employees can purchase any goods or services with a GST rate of 12 per cent or above to avail the benefit.The payments for such purchases have to be made via digital mode or cheque, demand draft, NEFT/RTGS. One can avail by submitting a simple application along with relevant bills. For any vouchers exchangeable for cash, the employer is responsible for deducting PAYE tax and NIC regardless of who gives the voucher to the employer’s employee. So Govt. The bills should be for the period from 12-Oct-2020 to 31-Mar-2021 and claim should be made within this period. This means that when an employee is paid from the petty cash, he will give the voucher to the person paying the money so he can present the vouchers to the finance department at the end of the month. What is the LTA/LTC cash voucher scheme? Both parties need to work together to work out the LTC scheme to benefit under the scheme. Here are the guidelines: Let us see how the computations/calculations done in this scheme. Means if you buy from non GST or where GST bills are not available, you cannot claim. Kalyan Jewellers IPO Review – Should you Subscribe? Rakesh Jhunjhunwala Low Priced / Penny Stocks – Should you invest? The employee has to exercise an option for the deemed LTC fare in lieu of the applicable LTC for the block year 2018-2021. Disclaimer: DesiDime.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to DesiDime.com. These vouchers are prepared to keep records of various cash payments relating to the business including capital and revenue payments. Enter your email address to subscribe to this blog and receive notifications of new posts by email. 1) If an employee deemed LTC fare is Rs 80,000 (Rs 20,000 x 4), then 3 times of this amount should be spent = Rs 240,000. Non-cash vouchers are vouchers that can only be exchanged for goods or services, not cash, e.g. For non central government employees, payment of cash allowance of a maximum of Rs 36,000 per person as deemed concession fare would be allowed as income tax exemption subject to T&C. Cash Payment Voucher Template is a sample voucher template created from Excel Payment Voucher Templateand Payment Voucher Template (Golden Shop). This receipt is necessary because cash is not as auditable as checks or credit card payments. « Rakesh Jhunjhunwala Portfolio – 10 Penny or low Priced Stocks – Should you invest? While preparing the purchase voucher, the purchase or goods account is debited and supplier’s account is credited with the value of purchase amount. Tax benefits can be claimed twice in a block of four year. Eligibility 1.1 Who can get the 2019 GST Voucher – Cash, and how much will I get if I meet the eligibility criteria? Here are the list of items which qualifies for LTC cash voucher scheme:- The list of items which carry 12% and above GST rate is provided below List of Items which carry GST 12% Cash/ Bank - If payment is made in Cash then cash or if its bank then bank. Again, Cash Vouchers are of two following types, (i) Debit Voucher, and (ii) Credit Voucher. Government of India has indicated that central government employees would be eligible for Leave Travel Concession (LTC) Cash Voucher Scheme couple of weeks back. Cash Payment Voucher Template contains 5 columns (item#, description, quantity, price, and amount) and no "Advance" field on the bottom of the form. The government came up with LTC to promote domestic tourism. It is a physically small form, since it must fit within the petty cash box or drawer. Accounting Vouchers. Finance Minister Nirmala Sitharaman launched the Scheme that will help in creating demands. 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