Hello Everyone,
I'm working as a HR Generalist in IT company. At present in our salary structure we have three monthly reimbursements Sodexo, Health and Wellness, Telephone allowances and we want to add Fuel allowance to provide tax benefit to employees.
Can you please let me know the process, calculation and how and what basis tax is exempted?
Thanks,
Sandeep
From India, Mumbai
I'm working as a HR Generalist in IT company. At present in our salary structure we have three monthly reimbursements Sodexo, Health and Wellness, Telephone allowances and we want to add Fuel allowance to provide tax benefit to employees.
Can you please let me know the process, calculation and how and what basis tax is exempted?
Thanks,
Sandeep
From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
There is no tax exemption for fuel allowance. it is a taxable perquisite.
If you need to make it exempt, you need to ask employees to submit their fuel bills and take reimbursement from the company. It is always better to let that be handled by accounts and don't add it to the Salary Slip or transfer during salary.
Procedure - it depends on your internal rules. In most cases, you need to get it approved by the top management or by HR Head and then communicate it to all employees. Ensure you put in a line that anyone who does not agree with the change needs to communicate it within 7 days. That will ensure that everyone is assumed to have agreed to change in the salary structure.
From India, Mumbai
2375If you need to make it exempt, you need to ask employees to submit their fuel bills and take reimbursement from the company. It is always better to let that be handled by accounts and don't add it to the Salary Slip or transfer during salary.
Procedure - it depends on your internal rules. In most cases, you need to get it approved by the top management or by HR Head and then communicate it to all employees. Ensure you put in a line that anyone who does not agree with the change needs to communicate it within 7 days. That will ensure that everyone is assumed to have agreed to change in the salary structure.
From India, Mumbai
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