Do You Know 10 Options Included In Your Salary Which Can Reduce Your Tax Burden? Know About Them
The salary you get from office includes many options (allowances) which are useful in reducing your tax burden. Some of these have to be paid in full, but there are also 10 such options which come under the tax exemption.
If you are unaware about those options, you can read and know to get benefit. Following are the 10 options:
LTA (Leave Travel Allowance): Companies give Leave Travel Allowance (LTA) to their staff so that employees can move with family anywhere in the country. Traveling by train, plane, public transport is discounted. This benefit is available only on travel twice in a calendar year.
EPF: 12% of the worker’s basic salary and allowances are invested in Employees Provident Fund (EPF). The company also invests an equal amount. There is a discount on the contribution of the employee’s share, which is up to 1.5 lakh.
Car Maintenance Allowance: Reimbursement Claim on Car Expense. Exemptions for certain special work and personal work.
Children Education Allowance: Companies pay an allowance of Rs 1,200 a year or Rs 100 a month for children’s fees. Apart from this, tax exemption on tuition fees also under 80C.
HRA (House Rent Allowance): This part of salary is paid to the worker on house rent payment. For this exemption, it is necessary that it is part of the salary of the employee.
Food coupons: Food coupons are given by companies for food and drinks in the office. Up to Rs 26,400 per year is being given.
Exemption on hostel expenses: Children pay an allowance of Rs 3,600 or Rs 300 per month on hostel expenses. This discount is available for a maximum of 2 children only.
Phone Bill Re-Insemination: It covers telephone expenses including broadband internet connection. Tele-mobile bill re-insemination included.
Gift Vouchers up to 5,000: Companies give gifts to employees, which are exempt. However, its condition is that its total price should not exceed Rs 5,000 annually.
Uniform Allowance: Employees can also get tax exemption on purchase and maintenance expenses of uniforms.