Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

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.

Updated: Feb 11, 2019, 05.19 PM IST
How your employer can help you reach zero-tax Rs 5 lakh income
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

Also Read

Tax optimiser: How Shah can cut tax by Rs 42,000 via tax-free perks, NPS

How to get tax e-refund

Tax tribunal rejects I-T department’s valuation tax math

Tax queries: Dividend earned from MFs is exempt from tax

Tax optimiser: How salaried Sharma can save Rs 11,400 tax via tax-free perks

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service