Flexi Benefits (1)

Flexi Benefits

| Components* Leave Travel Allowance (LTA) Cash Perk Children Education National Pension Allowance Scheme (NPS) *Components are subject to income tax laws

Cash Perk Entitlement: Reimbursement towards Petrol Bills, Driver ● Up to ₹25,000/Month and can be Salary, Books & Periodicals and Conveyance modified twice in a year (Oct/Apr Cycle). and payable based upon actual proofs submitted Claim Process: ● The amount can be claimed on monthly basis through Happay. ● The employee need to create voucher on or before 7th of the month. Note: ● The amount will be paid as reimbursement (non- taxable) on or before 10th of every month (not along with salary). ● If you choose to opt for this component and enter value against cash Perk; then the amount will be adjusted from your special allowance amount & a voucher will be created in petty cash voucher system ● Any voucher creates after 07th will be paid in next month reimbursement cycle.

Leave Travel ● Claim Two journeys in four years Block period to get Allowance income tax exemption. Leave travel allowance (LTA) remunerates ● Current Block period is 01.01.2022 to 31.12.2025 employees for their travel within the country. ● Tax benefit is restricted to actual fare amount spent on the journey and balance of the total LTA amount (part of the CTC) will be paid as taxable income Entitlement: Up to 10% of your Basic Salary However, this exemption is subject to the following rules: ● Exemption: Available only in respect of two journeys performed in a block of 4 calendar years. ● Payment: The amount will be paid on monthly basis along with salary as non taxable payment. You need to present LTA bills by end of financial year to avoid tax deduction ● Privilege Leave: The employee has to avail a minimum of four (4) days or longer of Privilege Leave in the year, for which L.T.A. is claimed. Sundays & Holidays falling within this period of four days shall be not be included as privileged leave ● Travel must be within India: Only travel within the country is covered. ● Only fare expenses are covered: Only the travel fare expenses can be claimed. Stay and food in trip aren’t covered. ● What counts as family: Immediate family that are mainly dependant on the employee are covered under LTA. Family includes spouse, dependent children and dependent parents, brothers & sisters of the employee.

Children Education Children’s Education Allowance: Allowance ● INR 100 per month per child up to a maximum of 2 The Government of India offers tax exemption of children. Rs.100 per child for a maximum of 2 children for education. Hostel Expenditure Allowance: This component is paid out towards tuition fees of ● INR 300 per month per child up to a maximum of 2 employees’ children and is tax deductible up to children. Rs. 100 every month for a maximum of two children. Hence, this amount is usually set to not more than Note: Rs. 2,400 a year for an employee. ● Along with this, you can also claim deductions for fees paid for your children under section 80C. ● No minimum age prescribed for reimbursement of Education Allowance and it is considered with respect of children admitted in nursery classes. ● For a normal child, the maximum age should be 20 years under this plan. ● It is applicable, Only if expenses are incurred in India as per the income tax act

National Pension ● Contribution: 5% or 10% of Basic Salary Scheme ● Investment done by Employee through the Corporate: this NPS is a voluntary and long-term investment plan contribution to the extent of 5% or 10% of Basic Salary is for retirement. It is a social security initiative by the eligible for tax deduction u/s 80CCD (2) of Income Tax Central Government. Act,1961. ● Investment done by Employee Directly: this contribution to the extent of Rs. 50,000 and eligible for tax deduction u/s 80CCD (1B) of Income Tax Act, 1961 (the direct investment of Rs. 50000 in NPS is additional tax exemption above Rs. 150000 allowed under section 80C). Both the tax benefit u/s 80CCD (1B) and 80CCD (2) are mutually exclusive can be availed of at same time. ● National Pension Scheme (NPS) offers two types of accounts - Tier I and Tier II ● Permanent Retirement Account Number (PRAN) will be allotted to employees ● Tie-up: We have tied up with Axis Bank Ltd. and KFintech Private Limited for the Corporate NPS benefit.