LTC scheme: Insurance premium paid between Oct 12-Mar 31 period eligible for reimbursement under LTC scheme

Economy


New Delhi: Premium paid for insurance policies purchased between October 12, 2020 and March 31, 2021 by central government employees will be eligible for reimbursement under the LTC cash voucher scheme.

Issuing the third set of FAQ, the Department of Expenditure under the Finance Ministry, also clarified that for purchases of goods like cars, employees can submit self-attested photocopy of bills instead of original bills as proof for availing the benefit under the scheme.

On October 12, the government announced the LTC cash voucher scheme under which employees can purchase any goods or services with 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 or demand draft or NEFT/RTGS.

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So far, employees had only Leave Travel Concession (LTC) benefits on travels made, or else they had to forgo the amount.

“On October 12, govt announced the scheme under which employees can purchase any goods or services with GST rate of 12% or above to avail the benefit.”

— LTC cash voucher scheme

The Expenditure Department said payment of premium for existing insurance policies would not be covered under the LTC cash voucher scheme.
“However, payment of premium for insurance policies purchased during the period between October 12, 2020, and March 31, 2021, is eligible for reimbursement under the scheme,” it said.

Vouchers/ bills for availing the benefit under the scheme has to be submitted on or before March 31, 2021.

Regarding submission of bills by employees who would superannuate before March, the Expenditure Department said, “vouchers/ bills should be submitted and settled before the date of superannuation”.

On whether an employee would be required to submit original bills for purchase of cars as the same may be required for claiming its warranty and ownership, it said, “self-attested photocopy” would suffice.

“However, the original bills may be produced on demand for information,” it added.



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