Tax-Free Income: The thought of earning tax-free income excites every salaried professional. After all, who wouldn’t want to save more from their salary? While income tax is mandatory, there are certain allowances and benefits that remain tax-free under the latest Income Tax rules.
After the recent Budget 2025, several tax-free income options are available under the new tax regime. Let’s explore which incomes are exempt from tax, who can benefit, and what conditions need to be met.
📌 Some companies offer an entertainment allowance or food coupons as part of the Cost to Company (CTC).
📌 This amount is reimbursed when employees submit original bills.
📌 Not all companies provide this allowance – it depends on company policy.
📌 Many employers provide a conveyance allowance to cover commuting expenses.
📌 This is a fixed tax-free amount given as reimbursement.
📌 It helps reduce the cost of daily travel for employees.
📌 Employees in certain industries (e.g., airlines, hospitality, government sectors) receive a uniform allowance.
📌 This reimbursement is tax-free, provided the original purchase bills are submitted.
📌 The company sets a fixed amount for this benefit.
📌 Certain professions require employees to purchase books, newspapers, or study materials.
📌 Companies provide a book allowance for this purpose.
📌 This is tax-exempt up to a fixed limit set by the employer.
📌 With the rise of remote work and digital India, many companies offer an internet allowance.
📌 Employees must submit their internet bills to get reimbursement.
📌 This facility is especially beneficial for work-from-home employees.
By understanding these tax-free allowances, salaried individuals can maximize their take-home pay while complying with tax laws. Ensure you keep receipts and bills for reimbursement and take full advantage of these exemptions under the new tax system.
Stay tuned for more updates on tax-saving tips and financial planning! 🚀
