Section 80C is not the only way to save tax. Restructuring your salary with efficient perks can increase your take-home pay.
Popluar Tax-Free Perks
| Perk | Exemption Limit (Annual) |
|---|---|
| Food Coupons (Sodexo) | ₹26,400 (@ ₹50/meal) |
| Newspaper/Books | Actual bills submitted |
| Telephone/Internet | Actual bills submitted |
| Uniform Allowance | Actual expense |
| Car Lease Policy | High savings (Car value/EMI dependent) |
Car Lease Policy
Company car lease is one of the biggest tax savers. The EMI is paid by the employer from your pre-tax salary, reducing your taxable income significantly.
NPS Contribution (Section 80CCD)
Employer contribution to the National Pension System (NPS) up to 10% of your Basic + DA is tax-deductible under Section 80CCD(2). This is over and above the ₹1.5 Lakh limit of Section 80C.
Gadget Allowance
Some companies provide a "Bring Your Own Device" or gadget allowance. If the asset is bought in the company's name and used for official work, it can act as a significant tax-efficient perk compared to a taxable cash allowance.
Flexible Benefit Plan (FBP)
Most companies offer these perks under a "Flexible Benefit Plan" (FBP). This means you get to choose which components you want to structure your salary with. This window usually opens at the beginning of the financial year. Choose wisely based on your actual usage to maximize tax savings.
Taxation of Unclaimed Allowances
If you opt for an allowance (like LTA or Books & Periodicals) but fail to submit valid bills as proof of expense, the entire amount becomes fully taxable at the end of the year. So, only opt for components you are sure to utilize.
Conclusion
Smart salary structuring can increase your take-home pay by thousands of rupees annually. Look beyond the standard 80C deductions and explore these tax-efficient allowances. Review your company's policy and make the most of the Flexible Benefit Plan to legally reduce your tax burden.