Sitharaman on Monday announced an ‘LTC Cash Voucher Scheme’ which will be launched with applicability till March 31, 2021. Under the LTC scheme, central government employees get LTC in a block of four years — one travel to anywhere in India and one to hometown or two for hometown visits. Air or rail fare, as per pay scale or entitlement, is reimbursed and in addition leave encashment of 10 days (pay and dearness allowance) is paid.
In this case, the government will make full cash payment on leave encashment and payment of fare in three flat-rate slabs depending on class of entitlement, including making the fare payment tax free.
Here’s where the brokerages and industry sources disagree:
ICICI Securities said in a report that it is difficult to estimate how many people will avail this scheme. “The requirement to contribute money from one’s own pocket could prove to be a