Hello fellow investors,
- The employee exercises an option for the deemed LTC fare in lieu of the applicable LTC in the current block (the year 2018-21);
- The employee spends a sum equal to three times the value of the deemed LTC fare on purchase of goods/services which carry a Goods and Services Tax (GST) rate of at least 12% from GST registered vendors/service providers through digital mode;
- The expense is made between 12 October 2020 and 31 March 2021; and
- The employee obtains the voucher indicating the GST number and the amount of GST paid.
An Employee who has not availed LTC during 2018-21 would be eligible to avail of the tax exemption subject to the condition that the person spends three times that amount on goods or services with GST of 12% and above.