Tax-Saving Tips for Salaried Employees: What Are Your Go-To Reimbursement Options?

Reimbursement for Tax-Saving Options for Salaried Employees

For a private sector employee, please suggest possible reimbursement options or other alternatives beyond Section 80C to reduce tax liability. Please note that these options exclude Section 80C, medical, and NPS-related matters. For example, some companies provide a fixed telephone or broadband bill amount per month for employees.

Thanks

Any reimbursement, whether it be for medical expenses, conveyance, or telephone costs, supported by bills or a declaration by the employee, will be exempted from taxable income. On the other hand, if the same reimbursements are provided as 'allowances,' they will be considered part of the salary and become taxable. The amount of the former is presumed to be actual but variable, while the latter is fixed.