Income Tax Tips: Know what is tax-free income, not everyone gets it, and some conditions have to be fulfilled..
Tax-free income, just hearing this is enough to bring sparkle to 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 them, 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 the office. However, this amount is already decided as to how much money you will get under the 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 people get the facility to work from home along with the office. In such a situation, people need the Internet to do company work. There are many companies that 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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