While filing income tax returns, a employee always wants to save tax somehow. In the new budget, no tax has been announced on taxable income of up to Rs 12 lakh. In such a situation, the biggest contribution in saving tax is the reimbursement and allowance, which are tax free. Many companies offer different allowances to their employees, including many options such as travel, medical, house rent and telephone reimbursement.
If you use these allowances in your salary properly then you can benefit more. Let’s know about the allowance that your savings are possible.
Transport allowance
Transport or Convens allowance covers the expenses of moving home from your office. Many companies give this allowance to their employees, but some companies do not include it in the salary package. If you do not have this allowance in your salary, then try to get it connected. This will also cover the cost of your movement and there will be no tax on it, which can increase your savings.
Medical allowance
Many companies offer medical allowances to cover their employees and their family treatment expenses. If your company does not provide this facility, then try to get it included in the salary package. This can lead to your medical expenses Reerage. This will not only save money, but the health of the family will also be taken better care of.
Some companies give food coupons and mile voucher coupons to their employees, which reduces the cost of eating and drinking and also saves tax. It is also called entertainment allowance in many places. If it is not included in your salary, then check the company’s policy and try to add it.
Car maintenance allowance
Some companies give their employees a car maintenance allowance, which reduces the expenditure related to the car. Under this allowance, the cost of things like petrol-diesel, servicing and driver’s salary is covered. If your car expenses are high, you can talk to your company’s HR and make it a part of your salary. There is no tax on this, which also saves you and it becomes easier to handle the expenses of the vehicle.
Mobile and internet allowance
If you use mobile and internet for office work, some companies spend it. Under this allowance, payment of your phone and internet bills is tax free to a fixed extent. This reduces your taxable income and gives you financial benefit.
Magazine allowance
If it is necessary to read newspapers, magazines or books in your work, then your company can give allowance for this. This allowance is tax free, which can reduce the tax burden on your salary. If this policy is present in your company, then you can take advantage of saving tax by making it a part of your salary.
House rent allowance
If you live in a rented house, House Rent Allowance (HRA) can be an important part of your salary for you. Many companies offer this allowance to their employees, which can be up to 40–50% of your basic salary.
Uniform allowance
Some companies also provide uniform allowance to their employees, so that they can maintain their office dress. If your company also provides this facility, then get it included in your salary. Because there is no tax on it.
New Income Tax Bill: New Income Tax Bill may be introduced in Parliament in new week, Finance Minister expected