ITR Filing: While filing Income Tax Return, every person thinks about how to save tax. The biggest contribution in saving tax is of all the allowances, which become tax free and save your money. In such a situation, when you join a job, then only you should get all the allowances included in your salary. You can also get your salary changed in between, for which you will have to talk to the HR of your company. Let us know about 10 such allowances, which save a lot of your money as soon as they are included in the salary (How to save tax by changes in salary).
1- House Rent Allowance
Many companies give house rent allowance to their employees. It includes up to 40-50 percent of your basic salary. If you are not getting house rent allowance from your company, then immediately talk to HR and get it included in your salary and save tax.
2- Traveling or conveyance allowance
Transport allowance or travelling allowance or conveyance allowance covers the cost of travelling between your office and home. Although most companies provide this allowance to their employees in their salary, some companies do not provide it. If this is not a part of your salary, then get it included so that you do not have to pay tax on that money and you can benefit from it.
3- Food coupons or entertainment allowance
Food coupons or meal vouchers or Sodexo coupons also save your tax. In some companies, it is also called entertainment allowance. Many companies give entertainment allowance of about Rs 2000-3000 every month. You just have to show the food bill to the company and you will get its money back without any tax deduction.
4- Car maintenance allowance
There are many companies that 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 expenses on the car, then you can talk to your company’s HR for it. If you get car maintenance allowance, then you will not have to pay tax on it.
5- Leave Travel Allowance
This is an allowance that many companies give to their employees. Under this, you are given allowance to travel somewhere. You can go on a long tour 2 times in 4 years and get its expenses reimbursed under Leave Travel Allowance up to a certain limit. So if you also like to travel and LTA is not included in your salary, then get it included immediately and save tax.
6- Mobile phone and internet allowance
Under this allowance, you get reimbursement of your mobile phone and internet bills. That is, whatever you have spent on this, the company gives it to you up to a certain limit without deducting any tax. This reduces your taxable income and benefits you.
7- Uniform Allowance
There are very few companies that give this allowance to their employees. You can talk to your company and if you get uniform allowance there, then you can include it in the salary. This money is given by the company to the employees to maintain the expenses of the uniform, on which no tax is levied.
8- 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 of great help to you, because it will save tax and also keep the family’s health good.
9- Education/Hostel Allowance
If you have a child, you can get education or hostel allowance according to his/her age and qualification. Talk to your HR about this and they will tell you how to avail this allowance.
10- Newspaper/Magazine/Books Allowance
There are many jobs which require reading newspapers, magazines or books. Media is also one of them. Such companies provide allowances to their employees up to a certain limit. If you are also in such a company, then you can include it in your salary and save tax.
