Usually people look at the measures to save tax at the last moment, but sensible and aware taxpayers get involved in this measure at the beginning of the financial year itself. One such solution is the opportunity provided by the companies. Many companies allow their employees to make some changes in CTC at the beginning of every financial year. If your company is also giving the facility of restructuring the salary, then you can use it for tax saving. Today we are going to tell you about eight such measures…
Fuel and travel reimbursement
If you go to office by taxi or cab, then get it reimbursed tax- becomes free. On the other hand, if you are using your own car or a car given by the company, then you can get the payment for fuel and maintenance expenses tax-free.
Many companies pay their senior employees to hire drivers. In these cases, a nominal tax of Rs 900 per month is to be paid on the salary paid to the drivers.
Leave Travel Assistance
If claimed twice in a period of four years If you go, the payment received against the travel expenses of you and your family can be made tax-free. Now with the easing of Covid restrictions, this option has become accessible.
If your company offers the facility to purchase movable assets, huge savings can be made . Under section 17(2), if a gadget or equipment is purchased in the name of the company and given to the employee for personal use, then only 10 per cent of the value is taxed in these cases.
Internet and phone bills
The popularity of work from home has explained the importance of internet and phone bills. There was a time when almost everyone was working from home. The amount of such expenses are also tax-free. For this, the employees have to pay the original bill.
Newspapers and periodicals
Payments made for the purchase of newspapers and periodicals are also tax-free, provided they The original bill must be attached.
Food and drink coupons
Under this, Rs 50 is tax-free for a one-time meal. In this way, a salary of Rs 2,200 per month can be made tax-free by using such coupons. This facility has been around for a long time, but only a few companies are taking advantage of it.
Contribution to NPS
Many companies offer this wonderful option to their employees. Under section 80CCD, contribution equal to 10% of basic pay in NPS becomes tax-free. Also it provides social security after retirement.