Some companies are providing the facility of internet, power backup, phone etc. to the employees to work, but in most of the companies, the employees have to fill this expenditure from their pocket.
Work from home has now become new normal. Due to this, the cost of companies has come down. But you have to spend extra on things like internet, power backup, room heater, electronic accessories, air conditioner. This has increased their cost. In such a situation, tax exemption is being demanded for the employees doing work from home.
Employees are incurring expenses out of pocket
Some companies are providing the facility of internet, power backup, phone etc. to the employees to work, but in most of the companies, the employees have to fill this expenditure from their pocket. Experts believe that the government should give tax exemption to employees keeping this aspect in mind. It is expected that in the budget, Finance Minister Nirmala Sitharaman will announce income tax exemption for the employees working from home.
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Money will come in the market if you get tax exemption
Experts believe that whatever the employees are spending during work from home, the expenses are usually from the employer. That expense should be deducted from taxable income. This will save the tax of the employees and bring more money in their hands. If the employees have more money in their hands, then they will spend it. This will create demand in the market and consumption in the economy will also increase. This is good for the economy.
Due to working outside the office, the employees are incurring more expenses which the company used to raise earlier. Some companies pay employees for this. But it also comes under the tax net. Therefore, workers doing work from home are expecting income tax exemption.