Invest in your child's education, reduce your tax liability too!

What's the scheme?

  • A cash allowance of up to Rs.36,000 per person shall be allowed as 'deemed LTC fare' that would be exempt from tax. However, for a family of 4, this amount would be 36,000*4 = 144,000. Please note that 36,000 per person is the upper limit, you can avail a lower benefit as well.
  • This quantum of tax reduction that you are eligible for is one-third of the amount you spend. For example, should you purchase a Career Launcher or ICE GATE program worth Rs. 90,000, you can claim a tax reduction of Rs.30,000.

Who's eligible?

Government & Non-government (private sector) employees that have not opted for the new concessional tax regime introduced from this financial year, i.e. if you are still going to pay tax as per the old system that existed in Financial Year 2019-2020.

How do I avail the scheme?

As a parent, you need to

  • Ensure you have not already exhausted your LTC claim for the block 2018-2021
  • Confirm with your employer whether they have implemented the scheme
  • Confirm how much of your LTC for the year is available to you. It is very important that you get this information from your employer. LTC components for employees vary across organizations and across levels in organizations, for example, while you may have an LTC component of Rs. 35,000 per year in your salary, your manager / boss may have an LTC component of Rs. 50,000 per year.

    The amount that you finally avail is Rs 36,000 per person or the actual LTC whichever is lower.
  • Simply submit CL's receipt with your employer, highlighting the GSTIN and the quantum of GST paid

From when is the scheme valid?

The scheme was started by the government from 12 October 2020

Till when is the scheme valid?

The scheme is valid on all purchases made till 31st March 2021

Why has this scheme been started?

As a result of COVID, many employees will be unable to make the most of their LTC, and should they belong to the four-year LTC block of 2018-21, their LTC could go unutilized.

What is LTC and how does it work?

Leave Travel Concession (LTC) or Leave Travel Allowance (LTA) is a salary component offered by many companies as part of an employees Cost to Company (CTC). It is used to provide remuneration against personal travel expense and can be claimed a maximum of twice separately in a four-year period (alternatively for both in a single shot).

How can I make my payment?

Payment must be made through a digital only mode to avail this scheme.

Can I make my payment in instalments?

No, this scheme is offered only to those individuals who make a one-time payment for purchasing a Career Launcher / ICE GATE program.

Can I club this scheme with other discounts schemes offered by Career Launcher / ICE GATE?

Yes, you can. However, please ensure that you make your payment through a digital mode, and that you opt for the one-time payment discounted price.