How Can I Create a Tax-Saving, Employee-Friendly Compensation Package?

Hi, Friends, as a Compensation and Benefits Manager, I am looking forward to creating a compensation structure that is employee-friendly and helps in saving taxes. Currently, we have the following components:

- Basic Salary
- HRA
- Conveyance Allowance
- Special Allowance
- Flexi Allowance (combination of Medical Reimbursement, Sodexo Meal Vouchers, and Gift Vouchers)

Seeking Guidance on Additional Reimbursement Items

I am eager to include more reimbursement items that can aid in tax savings. However, I require proper guidance on certain categories such as Domestic Help Salary Reimbursement, Dress Expense Reimbursement, Journal Reimbursement, Renovation Reimbursement, etc.

I am looking forward to your support on the same.

Thank you.

Business Attire Reimbursement, Information Update Reimbursement, Telephone Reimbursement, Medical Reimbursement, Commuting Reimbursement, Entertainment Reimbursement, Sodexo Coupons, etc. Request you to also check the revised tax structure and levy of FBT.

Thanks, Ajeet,

We already have Sodexo Meal Vouchers, medical reimbursement, and car expense reimbursement (at the senior level). Do you have any idea about the limits of tax benefits on other heads besides the ones we already have?

Thanks Ajeet,

We already have Sodexo Meal Vouchers, medical reimbursement, and car expense reimbursement (at the senior level). Do you have any idea about the limits of tax benefits on other heads besides the ones we already have?

Children Education Allowance - Rs.200/- per month - Tax-free.

Children Hostel Allowance - Rs.300/- per month - Tax-free.

Special allowance is taxable.

LTA - up to 2 months of basic salary - Tax-exempt.

Club Allowance - Tax-exempt.