Budget 2024: Want to save tax? Including these 5 allowances in your salary will help you save big

Income Tax Saving Tips: When we hear the word 'income tax', the first thing that strikes out mind is how can we save our tax? As a salaried person, specially when you are in a high tax slab, you have to pay considerable amount in income tax annually. However, the government has many provisions in the Income Tax Act through which you can claim for tax deductions. While we are aware of some of them, there are many, which we can claim, but in lack of knowledge, skip. If you include allowances such as Leave Travel Allowance (LTA), food coupons, and house rent allowance in yor salary, you can save income tax considerably. In this write-up, we will tell you how- 

Food Coupon

Many companies provide food coupons or meal vouchers or Sodexo coupons.

You can use these coupons at food joints or when ordering food online.

In this, coupons worth up to Rs 100 can be taken daily.

Some companies are also crediting it in Paytm Food Wallet.

Coupons are included in the reimbursement category in the income tax.

If a company gives Rs 100 a day at the rate of Rs 50 per meal twice daily, you can show Rs 26,400 in income tax.

Leave Travel Allowance

Companies give Leave Travel Allowance (LTA) to their employees.

You can also take advantage of this while filing ITR.

The company gives this allowance to you to travel during your vacations.

You can go on a long tour twice in four years.

You can avail tax exemption up to a limit on the entire expenditure of this tour.

This limit can be equal to your LTA.

You can get leave travel allowance added to your salary by talking to company HR.

Travel or conveyance allowance

Transport Allowance or Travel Allowance or Conveyance Allowance, this allowance is given for traveling for office work during office hours.

The company gives you this allowance for commuting from home to office.

This allowance is also a part of your salary, but if you take it as an allowance, you can get tax exemption on it.

Conveyance allowance can be taken as reimbursement.

Such reimbursement is not taxable, in fact, it is also not included in the taxable salary.

House Rent Allowance

House rent allowance is given by most of the companies to their employees.

This amounts to 40-50 per cent of your basic salary.

Income tax exemption is available on the amount of house rent allowance while filing ITR. 

Car Maintenance Allowance

Many companies give car maintenance allowance to their employees.

In this, the employee is given car maintenance, petrol-diesel expenses and the driver's salary.

You can get tax exemption every month.

This can also be taken as reimbursement.

With the help of this allowance, you get an opportunity to save tax on some of your extra salary.