There are many individuals who receive a number of benefits, both monetary and otherwise, apart from their salaries. These can include lifestyle perks such as membership to clubs and accommodation provided by the company to name a few. Owing to the increasing competition in the corporate sector, these days, even mid-sized companies have also started providing such perks.

While these make us feel special and also help us enjoy life to the fullest, there are also some tax factors involved which needs to be taken into consideration. Salaried Employee can fill and submit income tax form 16 after calculating taxable income tax amount to save income tax. Some of these are as follows -


Accommodation

If you the option to choose between a company leased accommodation and paying the rent on your own, you need to choose between the two based on the tax benefits which stand to offer. For instance, the amount which is paid as rent by your employer gets deducted from your salary. thus, your taxable income gets reduced.

On the other hand, if the lease is being paid by you, you can ask for the HRA department for exemptions which is usually 40-50% of your basic salary depending on the city you are living in. If you find that you are saving more by making use of the HRA claim, you should opt for personal accommodation.

Company Car

If your company has provided car leasing options then the instalments paid by your company to the car leasing company should be deducted from the salary. As a result, this will decrease the final salary.