If you include these 7 allowances in your salary, then you will not need any investment to save tax. Only when you join a job, you should include all the allowances in your salary, so that you can get maximum benefit.
While filing Income Tax Return, every person thinks how to save tax. Here it is important to understand that tax cannot be saved in just one day (How to save tax), but for this you have to start planning well in advance. If you include these 7 allowances in your salary, then you will not need any investment to save tax.
Only when you join a job, you should include all the allowances in your salary, so that you can get maximum benefit. You can also get your salary changed midway, for which you will have to talk to the HR of your company. Let us know about 10 such allowances, which when included in your salary (How to save tax by changes in salary), save you a lot of money.
1- Traveling or conveyance allowance
Transport Allowance or Traveling Allowance or Conveyance Allowance covers the cost of commuting between your office and home. Although most of the companies give this allowance in the salary to their employees, but some companies do not give it. If this part is not included in your salary, then get it included, so that you do not have to pay tax on that money and you can benefit.
2- Food Coupon or Entertainment Allowance
Food coupons or meal vouchers or Sodexo coupons also save your tax. In some companies it is also called entertainment allowance. Not every company gives this allowance, so if it is not included in your salary, then check the company’s policy once and know whether it can be included or not. Many companies give entertainment allowance of around Rs 2000 every month. You just have to show the food bill of Rs 2000 to the company and you will get the money back without deducting any tax. In this way you can save tax on about Rs 24 thousand in a year. If you fall in the 30 percent tax bracket, you will get a benefit of around Rs 7,200.
3- Car Maintenance Allowance
There are many companies which also give car maintenance allowance to their employees. Under this allowance, the employee is given the maintenance of the car, its diesel or petrol expenses and even the driver’s salary. If you also have high car expenses, then you can talk to the HR of your company about it. If you get car maintenance allowance, you will not have to pay tax on it.
4- Mobile phone and internet allowance
Under this allowance, you get reimbursement of mobile phone and internet bills. That is, whatever your expenses are, the company gives it to you up to a certain limit without deducting any tax. This reduces your taxable income and benefits you.
5- Uniform Allowance
Very few companies give this allowance to their employees. You can talk to your company and if uniform allowance is available there, then you can get it included in the salary. This money is given by the company to the employees to maintain the expenses of uniforms, on which no tax is levied.
6- Medical Allowance
Some companies also give medical allowance to their employees. Under this, the employee can reimburse his or his family’s medical expenses. If this allowance is not included in your salary then get it done. This allowance will be very useful for you, because it will save tax and the health of the family will also be good.
7- Newspaper/Magazine/Books Allowance
There are many jobs which require reading newspapers, magazines or books. Media is also one of them. Such companies provide allowance to their employees up to a certain limit. If you too are in a similar company then you can include it in your salary and save tax.
