Recently, getting to read more about Taxable, Non-Taxable and Partially Taxable Allowances . Now, with more and more companies have started providing newer allowances as well.
From WFH allowances for like furniture, Internet hardware, food, household and care, technology etc. While earlier provided entertainment or transport allowances cannot be used or claimed.
Employees are curious and have started to think on how to minimize the tax. Some questions come to mind-
- Will employee’s tax liability go up due to no claim on reimbursements?
- How will the new allowances be treated for tax purposes?
- Will the Taxable, Non-Taxable and Partially Taxable Allowances get a major shuffle?
Please share your views.