Descriptive guidelines on Flexi Pay components are also available at our web site under common

documents of Human Resource

a) Professional Development Allowance (PDA)

PDA is an allowance to encourage academic, research and training pursuits of

employees in educational and research institutions.

Claim limit shall be as per the Band and level in which a particular employee is placed.

Guidelines:
1. PDA shall be computed based on monthly accrual as per specified limit.
2. Under the Income tax Rules, PDA is exempted from tax to the extent of amount actually
incurred.
3. All Bills/Vouchers pertaining to PDA must be approved by the HODs.
4. Bills/ Vouchers must be submitted in original with the claim form.
5. If approved original bills/ vouchers are not submitted, PDA will be paid as taxable allowance
along with regular salary.
6. PDA bills are allowed for self only.
7. Bills must be of Current Financial year.
8. PDA can be claimed more than once in a year, subject to compliance of above-said
conditions.
b) Medical Reimbursement
Employee can claim tax exemption of Medical reimbursement to an extent of the amount spent
in obtaining medical treatment for himself or any member of his family.
Under section 17 of the Income-tax Act, tax exemption is available in respect of reimbursement
by the employer, not exceeding in the aggregate Rs.15, 000/- in a year i.e a maximum of Rs.
1250/- p.m.
Medical allowance (Maximum Rs. 1250/ p.m) will be paid along with the monthly salary.
Guidelines:
1. Self-certified Bills in original must be attached with the Medical Reimbursement Claim
Form.
2. Bills must be of Current Financial year.
3. Family in relation to an individual means, the spouse and children of the individual and the
parents, brothers and sisters of the individual or any of them, wholly or mainly dependent
on the individual.
4. The expense must have been incurred for medical purpose. Expenses incurred on
purchase of cosmetic items will not be considered.
5. Bills in original must be submitted, in the absence of original bills, the medical allowance
will be paid as taxable allowance along with regular salary.

c)

Leave Travel Concessions (LTC)

Employee can claim tax exemption of LTC to an extent of the amount actually incurred for any
travel for himself and his family, in connection with proceeding on leave to any place in India.
Maximum Limit is one month of the basic pay per annum
Guidelines:
1. Family in relation to an individual means, the spouse and children of the individual and the
parents, brothers and sisters of the individual or any of them, wholly or mainly dependent
on the individual.
2. The amount exempt for tax purposes shall in no case exceed the amount of expenses
actually incurred for the purpose of such travel with maximum limit of one month basic
salary.
3. The rebate can be claimed twice in a block of 4 calendar years. The current block of 4
years is for the period 1.1.2014 to 31.12.2017.
4. The employee should be on 3 days continuous leave for the purpose of claiming LTC
exemption.
5. The permitted mode of travel is air (economy class of national carrier), train (up to 1st class
AC) and Bus/Car in case of non availability of connectivity through air/train in the traveled
region, which does not includes any other expenses (Hotel Stay or food bills) except
traveling expenses.
6. Tax exemption for LTC claimed shall be provided in accordance with the limits and
conditions prescribed under Income tax Rules.

d) Child Education Allowance (CEA) & Child Hostel Allowance (CHA):

CEA & CHA is allowed to an employee to meet the education & hostel expenditure on their
children. Employee can get exemption of CEA & CHA up to two children with a maximum limit
of Rs.100/- per month per child towards CEA & of Rs.300/- per month per child towards CHA.
Guidelines:
1. CEA & CHA shall be will be paid to employee along with regular salary.
2. Employee has to submit the declaration in a specified format for claiming the exemption.
3. Maximum allowance can be claimed for up to 2 children.
e) Residential Telephone Expenses:
Employee can submit claim of telephone expenditure, on usage of telephone, Landline and
Broadband connections.
Limits are as per the particular Band / Level in which an employee is placed.
Guidelines:
1. landline and broadband connections are allowed for claiming expenses under this head.
2. The connection must be in the name of the claimant i.e. employee.
3. Bills in Original needs to be submitted.
4. The expenses claimed should pertain to current financial year.
5. The claim must be for the tenure during which the claimant is the employee of the
company.
f) Car Running and Maintenance Expenses:

Employee can submit claim of Car Running (Fuel expenses), Maintenance and Insurance
Expenses, if car is used for official purposes (either partly or wholly).
Limits are as per the particular Band / Level in which an employee is placed.
Guidelines:
1. The car must either be in the name of the employee/ employees spouse.
2. Claim can be made for Fuel, maintenance and insurance expenses actually incurred by the
employee.
3. Bills in Original needs to be submitted.
4. The claim must be for the tenure during which the claimant is the employee of the
company.
5. Employee has to submit copy of RC
Business Promotion Expense Reimbursement (BPER )
(BPER) is given to an employee for reimbursing the expenses he has incurred furthering
Companys business interests.
Limits are as per the particular Band / Level in which an employee is placed.
Guidelines:
1.
2.
3.
4.

BPER shall be computed based on monthly accrual as per specified limit.

All Bills/Vouchers pertaining to BPER must be approved by the HODs.
Bills/ Vouchers must be submitted in original with the claim form.
If approved original bills/ vouchers are not submitted, BPER will be paid as taxable
allowance along with regular salary.
5. Bills must be of Current Financial year.
6. BPER can be claimed more than once in a year, subject to compliance of above-said
conditions.
Books & Periodicals (B&P)
(B&P) is an allowance given to encourage academic, research and enhancement of professional
knowledge of the employees.
Limits are as per the particular Band / Level in which an employee is placed.
Guidelines:
1. B&P shall be computed based on monthly accrual as per specified limit.
2. Bills/ Vouchers must be submitted in original with the claim form.
3. If original bills/ vouchers are not submitted, B&P will be paid as taxable allowance along
with regular salary.
4. Bills must be of Current Financial year.
5. B&P can be claimed on monthly basis.
Dress/ Uniform Reimbursement
1. Expense on Dress is given to the employees so as to maintain and sport an attire which is
indicative of Companys prestige and reputation.

2. Limits are as per the particular Band / Level in which an employee is placed.
Guidelines:
1. Dress/ Uniform Reimbursement shall be computed based on monthly accrual as per
specified limit but is to claimed on Quarterly basis.
2. Bills/ Vouchers must be submitted in original with the claim form.
3. If original bills/ vouchers are not submitted, Dress/ Uniform Reimbursement will be paid as
taxable allowance along with regular salary.
Gift Voucher Coupon
1. Gift Voucher Coupon shall be paid based on monthly accrual basis with Rs. 5000/- being
the maximum annual limit i.e Rs. 417/- p.m.
2. The Company will purchase one time Sodexho coupons based on the need and disburse
Lunch reimbursement
1. Lunch reimbursement can be claimed on monthly basis with a Maximum limit of Rs. 1300/p.m (50 X 26 days) on the submission of original bills for the same value.
2. Limit is same for all the employees who have opted for lunch reimbursement option.