Non-govt staff will have to spend 7-14 times tax saved to gain from LTC scheme
Assuming a person can claim Rs144,000 as LTC and falls in the highest tax bracket of 42.74%. He would save Rs61,551 in tax. However, to save Rs61,551 in tax, the person will have to spend Rs144,000x3 or Rs432,000, which is seven times the tax saved
Last week, the government extended the leave travel concession (LTC) cash voucher scheme to private sector employees, too. It was originally announced earlier in October for central government employees alone.