Mobile Phone and Internet Recharge: Tax exemption for employees for about ₹24,000 per year

Communication Allowance is a personal employee benefit that is provided to an employee to meet mobile phone and internet recharge expense.

Communication Allowance on Mobile Phone and Internet Recharge for up to Rs 24,000 per year is tax free

As per the Income Tax Act/Rule Section 10(14) in India, Rs. 2,000 per month is tax exempted for an employee on submitting receipts to support their spends on mobile phone and internet.

Today the process is mostly done manually by the Human Resources department. Employees pay for mobile phone recharge or internet using their own credit/debit card or by cash, they collect the paper bills and bring it back to the office to submit for reimbursement.


Paysack Communication Reimbursement Card

The Paysack Communication Wallet + Card is a combination of a mobile wallet and a VISA prepaid card, thus enabling the Employee to use them to pay for mobile phone and internet recharge directly from the app or by using the card.

Employers can instantly load the Employee’s account with Communication Benefits credits and Employees can immediately start using these credits. Additionally, if there is a need to capture receipts, it can be done directly from the employee Paysack app and these can be stored away securely in the Paysack Cloud.

Looking for a smart solution to remove the need of collecting and storing paper receipts?

Thinking of a simple way to digitise the way mobile phone and internet recharge reimbursement process is carried out in your company?

You are at the right place. We are here to help you with that.

You may also want to read about how the Paysack Account for Employees can be useful to provide other tax saving personal benefits to your employees like: Meal Vouchers, Medical Reimbursement, Fuel & Travel Reimbursement

Co-Founder & CEO