Tax free income, just hearing this is enough to bring sparkle in the eyes of a working person. Most of the working people are troubled by heavy taxes. Just imagine, how would it be if you get an income on which there is no tax? Let us know what are the tax free incomes, who gets it and what conditions have to be fulfilled.
House rent allowance
Almost every company gives HRA i.e. House Rent Allowance to its employees. Under this, the amount of rent you pay becomes tax free. However, there is also a calculation of HRA, according to which it is known how much tax exemption will be available.
Food Coupons or Entertainment Allowance
This is the part of your CTC that you get as reimbursement. Different organizations have different policies. In such a situation, if there is this provision in your company’s policy, only then you will get its benefit. To get this, you have to give the original food bill to the company every month for the amount given by the company.
Conveyance allowance
Many companies also provide transportation expenses to their employees to and from office. However, this amount is already decided as to how much money you will get under conveyance allowance. You get tax exemption on this money and you get it as reimbursement.
Uniform and book allowance
Some companies reimburse their employees for expenses incurred on uniforms, books and newspapers. That is, by paying their bills, your income can be tax free up to a certain limit. Keep in mind that if you have to give original bills, keep them safely.
Internet allowance
In this era of Digital India, most of the people get the facility of work from home along with office. In such a situation, people need internet to do company work. There are many companies which also keep internet allowance as a part of their employees’ CTC. These also have to be reimbursed, for which you need the original internet bill.
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