Tax free income: On hearing about tax free income, the eyes of the employed people light up. Every employee tries to get the least tax deducted on his income. But do you know that there are some incomes on which no tax is levied? After the recent budget, you can take advantage of these under the new tax system. Let us know which income is tax free, who gets it and what conditions have to be fulfilled.
1- Entertainment Allowance
Some companies also give food coupons or entertainment allowance to employees. This is a part of your CTC, which is given in the form of reimbursement. Companies have different policies, so this facility is not available to everyone. If your company gives this allowance, then you have to submit the original bills for it.
2- Conveyance Allowance
Many companies give conveyance allowance to employees for commuting to and from office. This is a fixed amount which is not taxable. This amount is usually given in the form of reimbursement, which reduces the travel expenses of employees.
3. Uniform Allowance
Some companies also reimburse the cost of purchasing uniforms to the employees. For this, the company fixes a certain amount which is tax free. But for this you need to submit the original bills, so keep them safe.
4- Book Allowance
In some jobs, it is the requirement of the employees to read books and newspapers. In such a case, those companies give book allowance to their employees. This allowance is also given up to a fixed limit, which is tax free.
5- Internet Allowance
In the era of work from home and digital India, many companies also give internet allowance to employees. If your company provides this facility, then you will have to pay the internet bill and get it reimbursed. This facility is especially given to those employees who work from home and internet is included in their requirements.
