Tax season can be a stressful time,. In India, allowances offered by your employer can significantly reduce your tax burden
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Let's understand how to leverage these allowances for maximum tax benefit
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House Rent Allowance (HRA): This helps offset your rental expenses. A portion of your HRA is exempt from tax depending on your city and accommodation type
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Leave Travel Allowance (LTA): This covers travel expenses for you and your family during leave. To be exempt, you need to submit travel bills
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Children's Education Allowance (CEA): This helps with your children's school fees. A portion of this allowance is exempt from tax
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Transport Allowance: Make sure you claim exemption for commuting between home and office
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Food Coupons: Opting for tax-emempt meal vouchers from employers reduce taxable income
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Uniform Allowance: Choose a tax-free allowance for uniform maintenance if it is required by your job
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Medical Allowance: The previously non-taxable medical reimbursement is now included in the standard deduction