Tax saving and deduction

1. TAX SAVING SCHEME This year COVID-19 has slowdown so many things all over the world. Many people, businesses, industry etc. are facing too much loss, all the festivals and special events are gone with any celebrations. People enjoyed everything with just by staying at home. Government takes some precautions for the taxpayers and providing them relief on income tax. By coming up with many schemes taxpayer can also claim deductions in income tax return.  The government has extended the date of filing the income tax returns for the financial year 2019-20 financial year 3 times. Now the last date for filing tax return is 31 December 2020. File your returns in time, otherwise your difficulty will multiply. “ “You can get some new alternatives to save tax while filing your Income Tax Return (Income Tax Return) this year. In particular, you can claim tax exemption under the Allocation (LTC) Cash Voucher Scheme You can get some new alternatives to save tax while filing your Income Tax Return (Income Tax Return) this year. In particular, you can claim tax exemption under the Allocation (LTC) Cash Voucher Scheme” ” Relief given under this scheme This year, because of the COVID-19, government and private sector employees could not go anywhere. The government launched the LTC Cash Voucher Scheme for the comfort of employees this year. That is, employees can allege LTA money as cash. Till now, employees have been claiming on LTA travel bill. But this year, you can get tax rebate on the cash you have a spent as LTA.

2. Let’s understand with an example For instance:-  Mr. A has spent completely 50 thousand rupees as LTA during the financial year this year.  Earlier, he had to pay bills for a discount on travel tickets and LTA.  If Mr. A cannot enter the ticket and bill, then according to the tax slab, he has to give a claim after-tax deduction.  But this year, Mr. A only has to pay the bill of goods that he has bought with LTA money You can mention such bills:  With the money of LTA cash scheme, you can buy laptops, cars, TVs, smartphones etc. [NOTE: You can only claim goods that attract more than 12 % GST]  Apart from the products, you can spend on services like term insurance, Ulips or education loan etc., which entice 18% GST.