Drive home tax saving on
fuel allowance in just a few clicks
Zeta | May 24, 2019
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Drive to meetings. Make it official. And, SAVE UP TO Rs 12,000 in taxes annually -- is this a key take-home benefit for your employees?

Let’s start over, shall we?

Win over your people with one of the popular and most-used tax-saving benefits -- fuel allowance for employees. Typically identified as fuel allowance, car allowance, petrol allowance, fuel reimbursement for employees by corporate organisations -- this tax-saving benefit is defined under the Income Tax guidelines as motor car allowance/perquisite.

The fuel or petrol allowance is offered to employees who drive a company-owned or personal vehicle for work-related travel.

Fuel for thought

Petrol or fuel employee benefit is offered as part of the salary structure. It means employers can choose to introduce this benefit without any additional cost-to-company (CTC). The fuel benefit is offered as a tax saving component. This component includes a driver’s salary, too.

Employees can claim these expenses by submitting receipts and get a reimbursement on the same. The way fuel or employee benefit claim works is: employees get a full tax exemption to the extent of the receipts submitted. Employees can save up to 30% in taxes on the billed amount. And, if they happen to miss their receipt submission, employees will get taxed to the expense amount.

Swipe right to never miss a claim receipt

Note that the Income Tax office will check claims made in real time. Thus, it’s important for your employees to know that they can claim only what is legally entitled to them. And, for this, they need to retain all necessary receipts or credit card statements to support them.

And, with this comes the daunting task of checking, managing and maintaining all employee receipts, so that nothing is out of place and everyone receives their share.

Hold it. It’s not as uphill as it sounds.

Your simple answer is: digitising fuel reimbursements for employees.

Petrol or fuel employee benefit is offered as part of the salary structure. It means employers can choose to offer this benefit without any additional cost-to-company

Digital change begins with people. It’s a strategic transformation that helps businesses and it’s people from the ground up. Here’s a look at the core elements of digital claims: 

1. Speed and agility

You can automate all the processes related to fuel or petrol claims and send grants to your employees instantly. All you need is to go through a few clicks on the app before completing the process.

2. On the cue

Customise your fuel claims to meet the compliance requirement and your company’s policies. You can also define how you would like your employees to spend the fuel claims -- whether it’s against next fuel fill-up or any other purchases.

3. Intelligent offering

In today’s dynamic work environment, good employee experience is key. This includes convenience, speed, ease and suitability. And, digital claims will help you address all of these requirements. It’ll not only ease processes, but also help in achieving the desired outcome by bringing all fuel claims -- petrol allowance, vehicle maintenance and driver’s salary -- under one digital platform.

4. Automated processes

Use technology to automate critical processes such as keeping up with audits, managing multiple vendors offering different benefits under one platform, and more. With digital platforms, you can receive regular audit updates, track employee spends, manage vendors and more within just a few clicks. And, of course you can do all this by going Paperless, and without any manual intervention.

It’s given that businesses today have to innovate to stay relevant to these consumers, and more importantly to its employees. You can't be old-school and have them fill out forms. This generation has come up ordering and processing their every day lives on apps. And, if the services at work don't match up to this, chances are that employees will move on. Also, in adopting this digital change at work, there is an opportunity. To get you started, hear what our co-founder has to say about the new initiatives in e-filing.

 

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