While filing Income Tax Return, every person thinks about how to save tax. In the budget, under the new income tax regime, there will be no tax on taxable income up to Rs 12 lakh.
In such a situation, let us tell you that the biggest contribution in saving tax is of all the reimbursement or allowance, which are tax free and save your money. In such a situation, when you join a job, get them included in your salary, so that you can get maximum benefit. Let us know about 7 such allowances, which save a lot of your money as soon as they are included in the salary (How to save tax by changes in salary).
1- Traveling or conveyance allowance
Transport allowance or travelling allowance or conveyance allowance covers the cost of travelling between your office and home. Although most companies provide this allowance to their employees in their salary, some companies do not provide it. If this is not a part of your salary, then get it included so that you do not have to pay tax on that money and you can benefit from it.
2- Food coupons or entertainment allowance
Food coupons or meal vouchers or Sodexo coupons also help you save tax. In some companies, it is also called entertainment allowance. Not every company provides this allowance, so if it is not included in your salary, check the company’s policy once and find out if you can include it or not. Many companies provide entertainment allowance of about Rs 2000 every month. You just have to show the food bill of Rs 2000 to the company and you will get its money back without any tax deduction. In this way, you can save tax on about Rs 24,000 in a year. If you fall in the 30 percent tax bracket, you will get a benefit of about Rs 7,200.
3- Car Maintenance Allowance
There are many companies that also give car maintenance allowance to their employees. Under this allowance, the employee is given the cost of car maintenance, its diesel or petrol and even the driver’s salary. If you also have high expenses on the car, then you can talk to your company’s HR for it. If you get car maintenance allowance, then you will not have to pay tax on it.
4- Mobile phone and internet allowance
Under this allowance, you get reimbursement of your mobile phone and internet bills. That is, whatever you have spent on this, the company gives it to you up to a certain limit without deducting any tax. This reduces your taxable income and benefits you.
5. Uniform Allowance
Very few companies give this allowance to their employees. You can talk to your company and if you get uniform allowance there, you can include it in the salary. This money is given by the company to the employees to maintain the expenses of the uniform, on which no tax is levied.
6- Medical Allowance
Some companies also give medical allowance to their employees. Under this, the employee can reimburse his or his family’s medical expenses. If this allowance is not included in your salary, then get it done. This allowance will be very useful for you, because it will save tax and the health of the family will also remain good.
7- Newspaper/Magazine/Books Allowance
There are many jobs which require reading newspapers, magazines or books. Media is also one of them. Such companies provide allowances to their employees up to a certain limit. If you are also in such a company, then you can include it in your salary and save tax.
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