The benefits program is one of the most important components in an organisation to attract, motivate, retain and engage their employees. A ton of literature can be found regarding this.
At all times, organisations big and small are constantly trying to evaluate what is best for them and their employees. Talking to, reviewing and partnering with various vendors to offer services in different areas is something that is an ongoing process, year after year.
Research and various surveys have concluded that employees are found to be more loyal to their employer if they have a benefits program that are personalised to their needs.
There are various tax saving benefits and allowances that are approved by Income Tax India, but are not actively provided to employees by their employers. This could be due to the challenges around administering them in a way that is convenient for both the employer and the employee.
Some of them that could be considered for providing your employees include:
- Leave Travel Allowance (LTA)
- Meal Vouchers/Coupons
- Gift Voucher/Coupons
- Fuel Reimbursement (Including vehicle maintenance and driver salary)
- Communication Allowance (landline, internet/data cards, mobile – prepaid/postpaid)
- Research Allowance (Books & Periodicals Reimbursement)
- Gadget Allowance (Computers, laptops, and mobile devices)
Read about each of them in detail here:
Tax saving employee benefits & reimbursements – Paysack Benefits
Conveyance Allowance (has been removed effective April 2018 onwards)
Medical Allowance (has been removed effective April 2018 onwards)
These two allowances required the employee to collect receipts and submit proofs to their employers. Going forward, employees don’t need to collect or submit any proof for Conveyance and Medical.
In the Union Budget 2018, there was a proposal of standard deduction of Rs. 40,000.
This will be in place of Medical reimbursement (Previously Rs. 1250 per month) and Conveyance allowance (Previously Rs. 1600 per month) for taxpayers who are salaried.
Income Tax India has compiled a new, complete, and updated list of benefits available to salaried persons for the Assessment Year 2018-2019.
Find the Income Tax India link here.
Founder / CEO, Paysack