Hello Everyone, I'm working as an HR Generalist in an IT company. Currently, in our salary structure, we have three monthly reimbursements: Sodexo, Health and Wellness, and Telephone allowances. We are looking to add Fuel allowance to provide tax benefits to employees.
Could you please inform me about the process, calculation, and the basis for tax exemption?
Thanks,
Sandeep
From India, Mumbai
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Could you please inform me about the process, calculation, and the basis for tax exemption?
Thanks,
Sandeep
From India, Mumbai
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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 not 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 the HR Head and then communicate it to all employees. Ensure you include a line stating 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 the change in the salary structure.
From India, Mumbai
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2508Procedure
It depends on your internal rules. In most cases, you need to get it approved by the top management or by the HR Head and then communicate it to all employees. Ensure you include a line stating 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 the change in the salary structure.
From India, Mumbai
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Tax Exemption (SUPERB).doc
P. TAX EXEMPTION NOTIFICATION - CHHATTISGARH.pd f