Income tax: The Income Tax Department provides tax benefits on many types of allowances. To avail these allowances, you will have to make changes in your salary structure. You can talk to your employer’s HR department about this.
Income tax calculation: The government has given a big relief to income taxpayers. In the Union Budget 2025, the Finance Minister announced to make income up to Rs 12 lakh per annum tax-free. If you do a private job, then you will not need to pay tax on salary up to Rs 17 lakh. For this, you will have to use some special allowances, which are allowed by the Income Tax Department. For this, your salary structure will have to be changed.
In the new income tax regime, some special allowances are exempted from tax. There are some conditions for this. According to the Economic Times report, Harsh Bhuta, partner of tax consulting firm Bhuta Shah & Co., says that there are some allowances in the new regime, which do not come under the tax purview. These can be availed by fulfilling the conditions related to them. However, for this, changes will have to be made in your salary structure. You can talk to the HR department of your employer about this.
Telephone and mobile bills
An individual can claim exemption on telephone and mobile bill expenses provided by the employer. There is no limit for this. According to ET report, Yogesh Kale, Executive Director, Nangia Andersen LLP, says that there is no limit for exemption on telephone and mobile bills in both the regimes. However, this amount should be practical. It should be according to the position and responsibilities of the employee. If mobile or internet bill is not included in your salary structure, then you can include it.
Transport allowance to disabled employees
Companies provide transport allowance to disabled employees. It is not taxable. This allowance is given for travelling from home to office and office to home. According to ET’s report, disabled employees get a transport allowance of Rs 3,200 per month i.e. Rs 38,4000 annually, which is not taxable.
Conveyance reimbursement
This facility is provided by the employer to the employee to do his work easily. It is different from transport allowance. To avail this allowance, the employee has to submit the bill to the finance department of his office. If you want to avail this facility, then you will have to talk to the HR department of your employer.
Employer’s car lease policy
Many employers offer car lease facility to employees. Although it is considered a perquisite under income tax rules, its value is very low. In ET’s report, experts say that the perquisite value of a car given by the employer to the employee for personal and official use is very low. The valuation formula for this is the same in the new and old regime. If the engine capacity is less than 1.6 liters, then the taxable value of this perquisite will be Rs 1,800 per month. If the engine has a higher power than this, the taxable value of the perquisite will be Rs 2,400.
In the new income tax regime, a standard deduction of Rs 75,000 is available. Apart from this, the employer’s contribution of up to 14 percent in NPS is not taxable. Similarly, the employee’s contribution of 12 percent in EPF is not taxable. In this way, if you use all these exemptions and deductions, then your salary up to Rs 17 lakh will become tax-free.
