Lower tax regime u/s 115BAC was introduced by Budget 2020 for individuals wherein various different slabs were announced for individual and on the other hand benefits of various deductions and exemptions are taken away from individuals.
As we know, to boost economy during pandemic LTC package was announced by Central government, first for government employee and later for non-government employee as well.
People who opted for the lower tax regime provided in the Budget for 2020-21 are not eligible for the new incentive package through leave travel concession (LTC), said the finance ministry clarified on Thursday.
“…as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime… shall not be entitled for this exemption,” said the revenue department, which come under the ministry.
The department clarified this point while expanding the scheme to employees of the private sector, the public sector units and state governments.
