ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA
  • WhatsApp New Feature: Soon! you can undo, recover WhatsApp deleted messages
  • LIC customers ALERT! Insurer launches campaign to revive lapsed policies - All you need to know
  • Wealth Guide: Income Tax - SMART TIPS! 5 tax-saving techniques for FY23 - Here is what expert suggests
  • Loss-making US company's share price zooms over 400% in one month - factors behind rally DECODED
Read in App
Business News » Personal Finance News

Income Tax Return (ITR) Filing: These reimbursements are popular choices of salaried employees

Studies have revealed that, the most popular choice is claiming for phone and internet allowances; about 76% of employees prefer mobile and internet reimbursements.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Income Tax Return (ITR) Filing: These reimbursements are popular choices of salaried employees
ITR comes in various forms and different categories of taxpayers are required to communicate their income and income from other sources before Income Tax Department. Photo: Pixabay

Generally, salaried employees do struggle in last minute income tax return (ITR) filing, by gathering their documents and submit them in time. ITR comes in various forms and different categories of taxpayers are required to communicate their income and income from other sources before Income Tax Department. By doing so, a taxpayer gets refund value from their overall taxes they have paid. Hence, ITR is generally used as a medium to get some portion of taxes as refund. Interesting, studies have revealed that, the most popular choice is claiming for phone and internet allowances; about 76% of employees prefer mobile and internet reimbursements. 

Smriti Somani, Marketing Head at Zeta said, “Communication benefits or in other words, mobile and internet allowance is provided by the employer as part of the tax-savings program that helps employees take home a higher salary without adding any additional cost-to-company (CTC). As a pre-tax deduction, communication reimbursement helps reduce employees overall income taxes and is undoubted, the simplest form of reimbursements.”

In the Income Tax guidelines, communication reimbursements cover internet/data connection and phone bills - both landline and mobile number and the tax allowance is provided for all official calls and data usage.

Here are some benefits of communication tax-benefits, as per Somani. 

1. BYOD policy: Communication reimbursement follows the Bring Your Own Device (BYOD) policy of allowing employees to use their own smartphones or other devices for work purposes. Under this policy, your employees can claim their phone bills and internet expense even when they are using your personal phone to make official phone calls. This way you don’t have to worry about incurring any additional costs of providing a device; as it’s often done in case of laptops or desktop.

2. One claim for all: Out of the 51 allowances mentioned in the Income Tax guidelines, some tax-saving benefits may require certain criteria. However, mobile/phone and internet allowance are universal to all employees.

3. The number game: On average, most companies offer anywhere between Rs 1,000 to Rs 3,000 per month for mobile and internet claims. As per the Income Tax guidelines, there is no cap or limit to which an employee can make the claim. Having said that, you still have the advantage to decide the annual reimbursement limit.

4. Keep a record: You need to keep records of the bills to offer tax deductions, and these could be digital proofs such as e-bills or even physical copies. Companies must ask employees to regularly send digital copies of the bills to avoid going through heaps of paper during the tax filing season.

#JetAirways के स्लॉट्स, रूट्स पर उड़ेंगी दूसरी एयरलाइंस, जानिए क्या है पूरी खबर।@sameerdixit16 pic.twitter.com/OuieCd5czJ

— Zee Business (@ZeeBusiness) April 5, 2019

To further help you understand how you can boost your employee’s take-home salary, here ’s a rounded up number basis the assumption that you’re likely to offer a reimbursement cap of Rs 2,500 per month for mobile phone and internet reimbursements. Further, this assumption is for employees whose salaries fall under the 30% tax slab:

Apart from above, these are few guidelines a company must follow in regards to communication tax benefits and to convey them to employees. 

 

According to Somani, here are some of the guidelines companies must make employees aware of.

1. Name to claim: To make the claim, employees must have a data or phone connection in their name and they can claim for both landline and a prepaid connection.

2. Number of connections: Though the Income Tax guideline doesn’t follow any rules with regards to the number of connections, most organizations consider just one connection/number for reimbursements.

Thereby, while filing ITR, you must note that even your mobile data packs, and communication can help you safe hefty on taxes. Make sure you are aware of the above mentioned guidelines, and if you have any queries then do ask your company. They should be able to help you!

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Income tax return (ITR) filingITR Filingsalaried employees
Written By: ZeeBiz WebTeam
Updated: Fri, Apr 05, 2019
06:39 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
ITR refund status: Steps to check your refund online at Income Tax new portal ITR refund status: Steps to check your refund online at Income Tax new portal
ITR filing: Extend Due Date Immediately trends on Twitter as last date nears ITR filing: Extend Due Date Immediately trends on Twitter as last date nears
ITR filing last date is holiday for banks. Key things taxpayers should know ITR filing last date is holiday for banks. Key things taxpayers should know
ITR filing: How to file Income Tax Return without Form 16 - Explained  ITR filing: How to file Income Tax Return without Form 16 - Explained
ITR filing: Must take THESE basic precautions to avoid ERRORS ITR filing: Must take THESE basic precautions to avoid ERRORS

LATEST NEWS

Zomato-backed Shiprocket, valued at $1.2 billion, is India's 106th unicorn

Breakthrough in Delhi-Dehradun Expressway project, announces Nitin Gadkari

Apple layoffs 2022: iPhone maker sacks 100 contract recruiters, says report

This bank offers up to 7.5% interest rate on fixed deposits - Check latest FD rate and other details

Wealth Guide: Income Tax - SMART TIPS! 5 tax-saving techniques for FY23 - Here is what expert suggests

When will Mahindra's electric SUVs hit roads? Know company's big EV game plan

Sunil Mittal heaps praise on Modi government for ease of doing business as Bharti Airtel gets 5G bands within hours of payment

5G launch update: Telecos to announce tariff plans soon - Things consumers should know

Cabinet approves interest subvention of 1.5% on short term agriculture loan up to Rs 3 lakh for FY23 to FY25

5G spectrum payments: Four telecom companies pay Rs 17,876 crore upfront to DoT

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV