Tax-free allowances can be availed under new income tax regime too: Avinash Godkhindi, CEO, Zaggle Prepaid For instance, the Zaggle Multi Wallet Card can be used to pay for a range of employee benefits and reimbursements, says Avinash Godkhindi, CEO, Zaggle Prepaid
Digital management of flexi benefits eliminates the need to carry paper-based vouchers or go through the hassle of manual reporting of expenses, Avinash Godkhindi, MD and CEO of Zaggle Preapaid Ocean Services tells ET Wealth.How far does the salary structure determine the tax outgo of an individual?
The salary structure plays a critical role in determining the tax liability of an individual. Many tax deductions and exemptions are not available under the new tax regime.
However, there are certain tax-free allowances that can be availed of even under the new regime. A growing number of employers are cognisant of this fact and allow employees to customise their pay structure with tax-free allowances. The flexi benefits program tailors the compensation structure to suit the unique requirements of each individual.
The flexi benefit plan might be advantageous, but companies don’t want to increase their workload and overheads that come with these benefits.
This is not correct. The flexi benefits in the salary can now be managed digitally, which actually eases the compliance burden for both the employee and the employer. For instance, the Zaggle Multi Wallet Card can be used to pay for a range of employee benefits and reimbursements, including travel, books and newspapers, meals and telecom services. The card functions just like any other Rupay, MasterCard or Visa card, which means it can be used to make payments at any authorised merchant or online store.
How can this reduce the compliance burden for the individual and the company?
The Zaggle Zinger card eliminates the need to carry paper-based vouchers or go through the hassle of manual reporting of expenses for reimbursement. Every time the card is swiped for an expense, the amount automatically gets categorised under the relevant head. If a person eats at a restaurant and pays with the Zaggle card, the payment will be done from the meal wallet in the card. If he buys air or rail tickets for a holiday with the family, the LTA wallet pays for the purchase. Fuel bills get paid from the fuel wallet. The employee does not have to keep bills and submit them to the employer for claiming the amounts spent under different heads.
If the corporate requires, the user can scan the bills on the Zaggle mobile app on the go and the data is digitally stored for years to come, for the benefit of both the employees and employers. An added benefit is that the users find it very easy to track their expenses under different categories.
So, how does this benefit the company or reduce its compliance burden?
For companies, allowance management becomes easy as the funds can be added to the respective wallet of the employees seamlessly. Zaggle eliminates the tedious and error-prone process of verifying physical bills submitted by the employee, reimbursing the amount and maintaining physical records for different benefits. It’s a win-win situation for both employees and employers.
This story originally appeared on: India Times - Author:Faqs of Insurances
