No need not to pay income tax on the amount received against Leave Travel Concession

Salaried class including central government employees need not pay income tax on the amount received against LTC (Leave Travel Concession). The finance minister Nirmala Sitharaman made the announcement in this regard in the Budget 2021. The center had given this income tax exemption to the central government employees on 12th October 2020 (FY 2020-21) in the wake of COVID-19 pandemic. Since the Chinese virus is still around, the center has extended this income tax relief for all salaried taxpayers for the four year cycle of 2018-21.