LTC cash voucher scheme purchase date(before 31.03.2021) and claim date(?/ITR)

Sir/Ma’am,

I am planning to purchase a car through LTC cash voucher scheme but my company has stopped taking claim since 10.03.2021.I will be purchasing the car before 31.03.2021 but I will not be able to claim as my company has stopped taking claims.They are telling that you can do it through itr directly.Is it possible. As there is matter of savings of rs 1 lakh appx.I am purchasing a car just to avail LTC benefits.Also I don’t own a car as of now. I though it is the best opportunity.

Please reply at the earliest so I can take best decision possible.

Hello @MONU_KR ,

An employee can claim an LTC exemption once he fulfills the required criteria.
You can claim the available LTC exemption while filing Income Tax Return if the car is purchased before 31.03.2021. Further, you will have to retain the original bills to produce them as proof to IT Department on demand.

However, the reimbursement shall be based on the production of the invoice to the employer with details of GST. As far as possible, the claim should be made and settled well before 31st March 2021.
Hope this helps. :slightly_smiling_face:

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Ma’am,

Thanks for considering my query and thanks for the resolution. But Ma’am As I have mentioned my company has stopped taking claims from 10.03.2021 and they have stopped the online portal for ltc cash voucher claim itself.

I have asked them to consider my case as the scheme is till 31.03.2021 But my company has told me that as per corporate guideline they can’t do it now and I have to put it in ITR.

I have also checked ITR utility excel sheet of FY2019-20 downloaded from IT website, in that as per sec 10(5) no place for description etc against the column where one can provide invoice no etc.

Also your prompt response last line bothers me -“As far as possible claim should be made and settled well before 31st March 2021”.In my case claim settlement is not possible, but for sure my invoice date will be 21.03.2021-24.03.2021 possibly as my car loan processing is u/p and may take 2-3 days.

Your expert solution/advice is highly appreciated as appx Rs 108000/- is on stake from my pocket.

Thanks for sparing your time to assist and advise me.

Regards,

Monu Gulshan

Hello @MONU_KR

What your employer suggested is about claiming exemption of LTC while filing ITR. That can be claimed at the time of filing of ITR.
But the settlement of the amount has to be done only by an employer and for that, you have to put the claim to the employer. You can request the employer to accept the claim since it is to be done before March 31, 2021.
Further, the new utilities are yet to come which may have a place to claim this exemption.

Hope this helps. :slightly_smiling_face:

Thanks for the reaponse.

What I could get from your response that if Employer doesn’t provide you claim in my case the date i.e 10.03.2021 has already passed. Through Direct ITR It can not be claimed.

Hello @MONU_KR

Yes, the claim settlement can only be done by the employer. You cannot directly claim it through ITR.
While filing ITR, you can only claim the exemption.

Ma’am,

With our conversation I came to the point that I will not be able to get LTC cash voucher scheme on my car purchase despite govt last date 31.03.21 but our company last date 10.03.21 and My invoice date would be 24.03.21.

Sadly companies internal last date is way earlier than govt last date.

Hope govt gives some route through utility.

Kindly update if some thing comes up for this type of case.

Thanks

Hi @MONU_KR

Surely will let you know if there is any update for this type of case.

Thanks for you responses.

I have decided to go through itr route if quicko has some facility for my case, I will provide the CAR invoice details with GST at the tiem of ITR.

One more query in regard to ltc cash scheme, Leave travel allowance which will be non taxable will be 108000*3=324000 or 108000(considering a family of 3 members) And what will be the actual benefits for 30 percent tax bracket old regime (32400 or 97200).

KIndly assist for my query.

Regards,

Monu Gulsahn

Hi @MONU_KR

Calculation of exemption leave encashment will involve other details as well like Pay level, basic salary, the category you fall into, etc. Further, the benefit of LTC shall be 30% of LTC that is exempt in your case.

thanks Ma’am,

Please let me know if quicko can assist me or file my itr to avail ltc cash benefits as I have purchase car on 24.03.2021 and my company not accepting claim from 10.03.2021 onwards.

Regards,

Monu Gulshan

Hi @MONU_KR

Income Tax Return for FY 2020-21 will be filed in the month of June 2021. Regarding the claim of LTC exemption, several other parameters need to be checked of the Income Tax Act to confirm whether we can avail the same.

You can get in touch with one of our experts to find a resolution to your specific query :grinning:

Thanks Ma’am,

When one can start filing ITR

Hey @MONU_KR

The due date to file ITR for FY 2020-21 is 31st July 2021.

If you have to file ITR-1 or ITR-4, you can file it even now since the forms have been made available by the ITD. If you have to file other ITR forms other than these two, you can file once they are out.

To know which ITR form to file, you can use this tool.

Hope this helps!

Thanks Ma’am for your prompt response@ Profile - Ridhima_Sharma - TaxQ&A by Quicko - Get answers to all tax related queries & @Profile - Divya_Singhvi - TaxQ&A by Quicko - Get answers to all tax related queries.

Kindly let me know as ITR-1 utility is out now, Can lta cash voucher exemption be availed now as my employer stopped taking claims since 10.03.2021 and my purchase date is 24.03.2021 well before 31.03.2021 but after my employer date i.e 10.03.2021.

Kindly go through my previous queries in this regard.

Please assist me as I will be getting significant LTA exemption.

Regards,
Monu Gulshan

Hi @MONU_KR

The Income Tax Department has come up with a new offline JSON-based utility for the assessment year 2021-22. The new utility will help taxpayers import prefilled data and edit it before filing the income tax return (ITR). Once you receive your Form 16 and import your pre-filled data post that only you can understand if imported prefilled data of salary can be edited or not. If they allow entering the exemption you will be able to claim the same.

You can reach us at support@quicko.com once you receive your Form 16 and want to proceed with ITR filing.

Hope this helps!!

Thanks Ma’am,

Usually I do fill my own returns ITR-2 but if you can confirm me that you can make me claim LTA exemption of RS 108000, I will provide you all the details last three ITRs etc, I would be eager to take your paid assistance.

Please let me know the charges/fees etc for ITR-2.

Regards,
Monu Gulshan

Monu Gulshan

Hi @MONU_KR

Once you receive your Form 16 and have other details ready post that we will be able to assess if the exemption can be claimed or not.
We would be happy to help.
You can share your contact number and email id on Quicko | Contact Us so someone from our team can get in touch with you for details, process, pricing, and discounts?
Looking forward to simplifying taxes for you !:slightly_smiling_face:

Ma’am,

Is there any update & clarity on the same issue as utility & forms for filing are out now.

Regards,

Monu Gulshan

Hi @MONU_KR

The data in the utility will come prefilled from your Form 16. However, there is no such specific exemption mentioned in the ITR utility in relation to cash voucher scheme, but they allow you to mention other exemptions which has LTC as an option.

Hope this helps :slightly_smiling_face: