Tax-Saving Allowances: What Non-Taxable Benefits Are Your Companies Offering?

Hi All, I work as an accountant in an engineering services company. My employees keep complaining that other companies give a lot of allowances that are not taxable, reducing their tax outflow. These include allowances for electronic item purchases and washing. Could any of you share a list of allowances that provide good tax benefits?

Regards,
Prerna

I don't think so, as allowances to buy electronics are exempted. Of course, in any manufacturing industry, if there is a uniform system, then the washing allowance is exempted. Other than those, the following allowances are exempted:

- HRA
- Conveyance Allowance
- Medical Allowance

Regards.