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ITR Filing 2024: 10 Office Allowances For Salaried People That Can Help Save Income Tax

There are various allowance that salaried individuals can use to get rebate on Income Tax. Check them out.

10 Office Allowances Salaried Individuals Can Use To Save Income Tax

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10 Office Allowances Salaried Individuals Can Use To Save Income Tax

For those in the salaried class, income tax deductions offer a variety of options for tax savings. Various parts of your salary structure can lower your tax liability. The deductions and exemptions on these salary components allow you to significantly lower your taxes and increase your savings. 

 

1. Leave Travel Allowance

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1. Leave Travel Allowance

Leave Travel Allowance provided to employees helps them meet their travel expenses incurred for family trips to any place in India.

 

2. House Rent Allowance

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2. House Rent Allowance

The House Rent Allowance portion of an employee's pay assists in covering the rent for his residence. This could be totally or partially exempted from income tax. It is subjected to certain conditions.

 

3. Food Allowance

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3. Food Allowance

Food allowance can be given by the employer through pre-paid food vouchers or coupons. Such food coupons are exempt from tax up to Rs 50 per meal. 

 

4. Travelling allowance

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4. Travelling allowance

The expense of your commute between your work to home is covered by your traveling allowance. Many employers include this allowance in their employees' salaries, and they are exempt from paying taxes on it.

 

5. Education Allowance

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5. Education Allowance

As part of your pay, your employer might include an education allowance for your children. These allowances are not subject to taxes. You may, however, be eligible for an exemption of up to Rs. 100 per month or Rs. 1,200 annually. There can be no more than 2 children eligible for the exemption.

 

6. Medical Allowance

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6. Medical Allowance

Some companies also give medical allowance to their employees under which the employees can reimburse their family's medical expenses. This is a great allowance that helps employees save tax.

 

7. Car Maintenance allowance

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7. Car Maintenance allowance

Several companies give car maintenance allowance to their employees which covers car maintenance, diesel or petrol expenses. There is no tax on this allowance.

 

8. Phone Bill Reimbursement

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8. Phone Bill Reimbursement

Reimbursement for phone bills covers payments for broadband Internet connections, landlines, and cell phones. The income tax law allows an employee for a tax-free reimbursement of these expenses.

 

9. Gift Voucher

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9. Gift Voucher

For the employees, the value of a gift, voucher, or token given by an employer that totals less than Rs 5,000 per year is tax-free.

10. Uniform Allowance

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10. Uniform Allowance

This refers to the allowance that the employer gives the worker to cover the expense of buying or maintaining the uniform that they wear to their work.