Highlights
Investment in PF gets tax exemption up to 1.5 lakh annually.
Tax exemption is also available on the traveling allowance received by the employee.
The amount of home rent allowance included in the salary is also tax exempt.
New Delhi. If you are employed, then your salary (salary) includes many such options (perks), which can be helpful in reducing the tax burden. Of these, some options require full payment of tax, while there are 10 such options which come under tax exemption. In such a situation, every employed person should pay attention to whether he is able to take advantage of the facilities provided by the company or not.
1. Employees’ Provident Fund (EPF)
According to the EPF Act, the company invests 12 per cent of the employee’s basic salary and allowances in the EPF. The company also has to invest the same amount. The employee’s contribution is tax exempt, which is up to Rs 1.5 lakh. This exemption is available under section 80C of the Income Tax Act. Interest earned on this also comes under the purview of tax exemption.
2. Leave Travel Allowance (LTA)
In order for the employee to travel with the family anywhere in the country, companies give leave travel allowance, on which tax exemption is available. This discount is available only on travel by train, airplane or public transport. In this, the shortest distance to reach the destination is made the basis. This part of the salary can be deposited by the employee by depositing the booked ticket with the company. This benefit is available only if you travel twice in four calendar years.
3. House Rent Allowance (HRA)
This part of the salary is given to the employee in lieu of payment of house rent. To get tax exemption on this, it is necessary that it should be part of the salary. You can claim tax exemption on the amount received for HRA with the specified limit.
4. Car Maintenance Allowance
According to the bank market, the reimbursement claim can be made up to a limit on the cost of the car. You can also get tax exemption on this. However, it depends on whether the car belongs to the company or the employee. This reimbursement is available for some special office work and many personal work.
5. Food Coupons
Most of the multinational companies give food coupons for food and drink during office work. You can get tax exemption of up to Rs 50 on a one-time meal. Twice a day for 22 working days in a month can avail tax exemption of up to Rs 26,400 annually.
6. Children Education Allowance
In lieu of paying the child’s fees, companies pay an education allowance of Rs 1,200 annually or Rs 100 per month to the employee. This facility is available for two children only. In addition, one can claim tax exemption on payment of tuition fees under Section 80C of the Income Tax Act.
7. Discount on Hostel Expenses
Companies give hostel expenditure allowance to their employees. Under this, the employee gets an annual allowance of Rs 3,600 or Rs 300 per month on the hostel expenses of the child, which is tax-exempt. This discount is available for maximum 2 children only.
8. Phone Bill Reimbursement
This includes re-imbursement of both telephone and mobile phone bills. Telephone charges including broadband internet connection are covered under this. Some companies provide this facility to their employees, which comes under the purview of tax exemption.
9. Uniform Allowance
Employees get this allowance for the maintenance of their uniform while on duty. You can also get tax exemption on the expenses incurred in the purchase and maintenance of the uniform.
10. Gift Vouchers
Companies sometimes give gifts to their employees, on which tax exemption is available. However, the condition in this is that its total value does not exceed Rs 50,000 annually, only then can you get tax exemption.
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Tags: Business news in hindi, Filing income tax return, ITR, ITR filing
FIRST PUBLISHED : July 31, 2022, 07:50 IST