Methods to minimize tax outgo by over Rs 1 lakh! From LTA & journey reimbursements to meal coupons and driver wage – prime 10 perks you should not miss – Instances of India

Tax tricks to minimize your tax outgo: It is the top of the monetary 12 months and inside months it will likely be time to file your revenue tax return for monetary 12 months 2023-24 (AY 2024-25). If you’re seeking to scale back your tax outgo, then it is vital to pay attention to sure perks you can avail (relying on the advantages your employer gives!)
For a taxpayer falling within the 30% tax bracket, availing simply 7-8 of the ten perks listed beneath might help probably slash the annual tax legal responsibility by over Rs 1 lakh. One vital factor to notice is that whereas sure perks have predefined limits, the quantities claimed for others needs to be justifiable. Receipts or payments are important for claiming tax exemptions. Let’s check out 10 perks to chop tax as listed by ET Wealth:
1. Go away journey allowance: The Go away Journey Allowance (LTA) permits staff to journey throughout the nation for a trip with their household. Reimbursement of journey bills, together with highway, rail, or air journey, is granted upon submission of precise payments. You will need to word that the unclaimed quantity is topic to taxation, and staff can avail of lta twice inside a block of 4 years. The annual tax-free restrict for LTA stands at Rs 1,00,000.
2. Gasoline and journey bills: For many who must journey for work functions, reimbursement of journey and gasoline bills is on the market. Workers should present precise payments to assert this allowance. Sedentary staff with workplace jobs have a gasoline allowance restrict of Rs 2,400 to facilitate commuting between work and residential. The annual tax-free restrict is Rs 28,800.
3. Car upkeep and driver wage: Workers can declare an allowance for car upkeep and driver wage that they use for official functions, with a month-to-month restrict of Rs 3,300. The annual tax-free restrict is Rs 39,600.
4. Telecommunication reimbursements: Reimbursement of telecommunication bills, together with landline, web, and cell phone payments, is tax-exempt in opposition to the submission of precise payments, as much as Rs 36,000 yearly.
5. meals coupons, Meal coupons for a tax-free meals allowance of Rs 50 per meal are offered, amounting to Rs 2,200 monthly for 2 meals throughout working days. The annual tax-free restrict is Rs 26,400.
6. Books & Periodicals: Reimbursement for books, journals, newspapers, and on-line subscriptions is tax-free, supported by precise payments, with an annual restrict of Rs 24,000.
7. Studying and improvement: Corporations can also cowl the prices of on-line or offline programs for worker talent enhancement, tax-free upon invoice submission, as much as Rs 48,000 yearly.
8. Uniform allowance: Sustaining knowledgeable look is essential within the office, and a few employers present an allowance to cowl the price of work apparel. To assert this allowance, staff should present receipts as proof of buy. The annual tax-free restrict is Rs 24,000.
9. Devices and moveable property: This perk gained reputation throughout the work-from-home interval. Corporations buy objects beneath their identify and supply them to staff for private use. The annual tax-free restrict is Rs 60,000.
1o. Scholarship fund: Corporations might present a month-to-month or annual scholarship to assist the schooling of deserving youngsters of staff. This monetary help is designated particularly for education-related prices like tuition charges, books, and examine supplies. The annual tax-free restrict is Rs 60,000.