[dragonfire]

I had set my LTA component to zero, as I never do a claim on LTA. And I came to know about the LTC scheme only last month. Luckily my employer allows to increase/decrease the component anytime. So I allocated all the available amount to LTA for months Feb and March, so I was able to claim until Feb end.

BUT, they only allow submissions until Feb end. So if I buy something in March, I can't claim. There is no clear answer from the finance team about what to do with March bills given that the scheme is valid until Mar 31st.

Any way out? Am want to buy an iPhone 12 now.

[vsrivatsa]

Originally Posted by condor

That restriction is a bummer. In the org that I work for, we have to submit our proofs by Dec itself. The scheme must be open for purchases from Oct 2020 to Mar 31, 2021 if I am correct. If I am correct, then there is a gap ?

Yes the purchase window is 12.Oct.2020 until 31.Mar.2021. In our organization they have put a cut off date of 15.Mar.2021. Given the late notice that came from the Govt. they should have provided an extension for another 3 months but looks like the salaried are not a priority for anyone

In out Org, they have created a special form with multiple rows to enter details of the Date of Purchase, GST Number, Invoice, Digital Transaction Reference Number etc. Not only are we expected to submit/upload the GST Invoice but also the Credit Card Statement showing the transaction as proof point.

[Scorpio80]

My company had told me that the scheme is not applicable to private sector employees couple of months back when I bought the car.

When one of the colleague asked last week, he was told the firm has not participated in the scheme (don't even know how that is possible to not participate in government offered scheme).

The government did not make it any easier by not giving out a notification that can be sent the employer. All the notifications on their website just mention the public sector employees.

[sups]

Originally Posted by Scorpio80

My company had told me that the scheme is not applicable to private sector employees couple of months back when I bought the car.

I work in a private sector company. My colleague from private sector has successfully availed the benefit for his car purchase during January this year. There were no questions asked and it went smoothly.

I did not buy car, but I bought multiple things (including furniture etc.) and could avail the benefit.

[Scorpio80]

Originally Posted by sups

I work in a private sector company. My colleague from private sector has successfully availed the benefit for his car purchase during January this year. There were no questions asked and it went smoothly.

I did not buy car, but I bought multiple things (including furniture etc.) and could avail the benefit.

Lucky you. My company did not allow use my car for this scheme and since there was no official government notification mentioning private sector that I could send, didn't have an option but to agree with them.

[Altocumulus]

I have never claimed LTA or blocked the amount.

I bought the Rapid on 19 October. So will I be able to claim during filing of returns.

[vnabhi]

Originally Posted by sups

I work in a private sector company. My colleague from private sector has successfully availed the benefit for his car purchase during January this year. There were no questions asked and it went smoothly.

I did not buy car, but I bought multiple things (including furniture etc.) and could avail the benefit.

Can you please check from your colleague on how much the taxable income got reduced? Was it one-third of the invoice price? I don't think that much will be allowed--someone told me that the cap is 36k per person. So for a family of 2, only 72000 will be reduced from taxable income, which works out to around 23k of income tax rebate. For families of 4 (employee plus dependent spouse and children eligible for LTC), the rebate will be twice.

Please correct me if my understanding is correct.

[gopaneel]

Originally Posted by Altocumulus

I have never claimed LTA or blocked the amount.

I bought the Rapid on 19 October. So will I be able to claim during filing of returns.

Request you to check with your company HR at the earliest. My understanding is that this is dependent on the company and you need to file the claim before the end of March.

Originally Posted by Scorpio80

Lucky you. My company did not allow use my car for this scheme and since there was no official government notification mentioning private sector that I could send, didn't have an option but to agree with them.

It has supposedly been notified in the Budget. I read a news article said it is mentioned in clause 5 in section 10.
LTC Cash Voucher Scheme notified in Budget 2021

Originally Posted by vnabhi

Can you please check from your colleague on how much the taxable income got reduced? Was it one-third of the invoice price? I don't think that much will be allowed--someone told me that the cap is 36k per person. So for a family of 2, only 72000 will be reduced from taxable income, which works out to around 23k of income tax rebate. For families of 4 (employee plus dependent spouse and children eligible for LTC), the rebate will be twice.

Please correct me if my understanding is correct.

Your understanding is correct. They allow a maximum deduction of 36,000*(no. of family members). If one-third of the invoice amount is less than 36k * (no. of family members), then a corresponding deduction is allowed.

[sups]

Originally Posted by vnabhi

Can you please check from your colleague on how much the taxable income got reduced? Was it one-third of the invoice price? I don't think that much will be allowed--someone told me that the cap is 36k per person. So for a family of 2, only 72000 will be reduced from taxable income, which works out to around 23k of income tax rebate. For families of 4 (employee plus dependent spouse and children eligible for LTC), the rebate will be twice.

Please correct me if my understanding is correct.

As you rightly said, the reduction in taxable income is one-third of the invoice value capped at a maximum amount. For my colleague, it is a family of four. So, he gets an exemption of 36000*4=144000. The capped maximum invoice value is hence 144000x3=432000. Anyway, his car value is much higher, around 10 lakh. But it is still 40k+ reduction.

From our company side, it does not matter if it is a car or shoes as long as the GST is greater than or equal to 12%, invoice is in employee name and payment is made online.

[vnabhi]

Originally Posted by sups

As you rightly said, the reduction in taxable income is one-third of the invoice value capped at a maximum amount. For my colleague, it is a family of four. So, he gets an exemption of 36000*4=144000. The capped maximum invoice value is hence 144000x3=432000. Anyway, his car value is much higher, around 10 lakh. But it is still 40k+ reduction.

From our company side, it does not matter if it is a car or shoes as long as the GST is greater than or equal to 12%, invoice is in employee name and payment is made online.

Thank you very much. Even we are a family of 4, but my son and daughter are already working. Not sure if they will be counted as dependents
Need to find out if i can avail 36000 * 2 or 36000 * 4.

[rkg]

In Govt, LTC scheme, kids above the age of 25 years are not eligible.
Further, there are different slabs for eligible amount.
Govt employees in the pay level 14 and above are eligible for 36000 as fare per person
Govt employees below level 14 are eligible for 20000/- as eligible fare per person

Level 14 is joint secretary to Government of India

[whitewing]

Having claimed LTC only once in a 2 decade span, I was happy I could claim a deduction this time - against my life insurance.
I filled the forms and in our company we need to submit hard copies too, and then, I find out that the scheme does not apply for premium paid to existing polices and is open only for new life insurance policies opened post Oct '20 .

The tug of war between the Govt and me on the tax out go continues.

[Weathered]

The below article says you can claim the rebate when filing IT returns.

https://www.livemint.com/money/perso...298940982.html

[whencut86]

Is there a limit on the number of bills one call provide when claiming this benefit? My company has a limit of 3 bills for this LTC scheme but I have more bills which can be used actually if there is no limit. I have not seen a limit in the number of bills in any of the articles.

[reignofchaos]

Originally Posted by whencut86

Is there a limit on the number of bills one call provide when claiming this benefit? My company has a limit of 3 bills for this LTC scheme but I have more bills which can be used actually if there is no limit. I have not seen a limit in the number of bills in any of the articles.

No limit afaik from the government. These are arbitrary rules from your company.