Your employer can help you reach zero-tax income level of Rs 5 lakh: Here's how

Here are six benefits that can help the salaried bring down the taxable component of income from the employer.

How your employer can help you reach zero-tax Rs 5 lakh income
By Sudhir Kaushik of Taxspanner

Salaried taxpayers are eligible for many tax-advantaged benefits. Here are six benefits that can bring down the taxable component of the income from employer.

  • Leave travel assistance (LTA)
This is a reimbursement of expenses incurred on travel during a vacation. It is tax free if claimed twice in a block of four years.

Under Sec 80CCD(2), up to 10% of the basic put in the NPS by the employer is tax deductible. This is over and above the deduction claimed under 80CCC and 80CCD(1b) for contributions to the NPS.

  • Fuel and vehicle expenses
Insurance and maintenance of car and driver salary add a nominal Rs 1,600 and Rs 900 to taxable salary. Car can be for official and personal use but fuel expenses reimbursed only if used for work.

  • Newspapers, books magazines
The money spent on newspapers, books and magazines can be claimed as a tax-free reimbursement. This requires submission of actual bills.

  • Telecommunication bills
Telephone and internet expenses can also be reimbursed to the employee against submission of actual bills. This is also a tax-free perk.

Many companies offer food coupons to their employees. These coupons can be used to buy food items and nonalcoholic beverages from specifi ed outlets.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of




ET Business Listings
Generate Enquiries for your Business by Listing on

More from our Partners

Loading next story
Text Size:AAA
This article has been saved