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

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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.

  • NPS benefit

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.



  • Food coupons

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

 

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