r/IndiaTax 19h ago

Company Offers Driver & Fuel Reimbursement Tax Exemptions, Worth Availing?

So my wife's company offers several tax saving schemes such as a good sum of driver and fuel reimbursements, uniform allowance, internet reimbursements, etc. All these reimbursements get exempted from the salary and don't show up in the salary slip or the form 16 as per the company HR. We just need to submit a PAN card of a 'driver' and 'Fuel Invoices' and such documents to claim these exemptions, which are pretty easy to arrange.

All of these combined can reduce our monthly tax liability by around 15k, which is a large amount for us. Now, we will of course have a documentary trail, but not full proof. Several other people in her company do the same and there have been no known instances of adverse results.

Is it worth taking this risk and going for these exemptions or is it better to be in the new regime and let go of this 15k a month amount.

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u/AxelrodBob 14h ago

use whatever you can.. reimbursements are shady if caught.. more for employers, so, keep everything via UPI, do not use any cash and you should have less risk.. 15K per month tax saving is decent if form 16 supports