Tuesday, 16 February 2021

Life Insurance Premium eligible for LTC voucher scheme

 Life Insurance Premium eligible for LTC voucher scheme

The 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 such as cars employees can submit self-attested photocopies of bills instead of the original bills as proof for availing themselves 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 a GST rate of 12 per cent or above to avail themselves the benefit.

The payments for such purchases have to be made via digital mode or cheque or demand draft or NEFT/RTGS.

So far, employees had only leave travel concession (LTC) benefits on travels made, or else they had to forgo the amount. The expenditure department said payment of premium for existing insurance policies would not be covered under the LTC cash voucher scheme.

“However, the 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.

On the 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  uperannuation”.

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.


Post a Comment