what is the Books and periodicals allowance? #
Books and periodicals allowance is paid seldom as a salary component mostly in high CTC structures or for supervisory cadre employees. Employees often incur expenses on books, newspapers, periodicals, and journals and are allowed to get the reimbursement of the expenses from the employer which is exempted from income tax. The maximum amount of reimbursement is limited to actual expenses or the salary component amount provided for books and periodicals in CTC, whichever is lower.
As the saying goes, “leaders are readers.” In today’s fast-paced world, it is essential for professionals to keep themselves updated with the latest industry trends and best practices. To encourage employees to read and stay up-to-date with their industry, the Indian government has introduced a books and periodicals allowance in the Indian payroll.
The books and periodicals allowance is a monetary benefit provided to employees to purchase books, periodicals, and other reading material related to their field of work. This allowance is given in addition to the employee’s regular salary and is aimed at promoting continuous learning and development among employees.
Who is Eligible for the Books and Periodicals Allowance? #
The books and periodicals allowance is available to employees in both the public and private sectors. However, to be eligible for this allowance, the reading material should be related to the employee’s field of work. Moreover, employees must provide proof of purchase to their employer to avail of this benefit.
How Much are the Books and Periodicals Allowance? #
The books and periodicals allowance is a non-taxable benefit, and the amount of the allowance varies depending on the employer. According to the Income Tax Act, of 1961, an employer can provide up to Rs. 15,000 per annum as a books and periodicals allowance to an employee. However, the employer can provide a higher amount as a books and periodicals allowance based on their discretion.
How are the Books and Periodicals Allowance Paid? #
The books and periodicals allowance is paid to the employee as a separate component in their salary slip. This allowance is paid in addition to the employee’s regular salary and is not subject to tax deductions. However, the employer must ensure that the employee provides proof of purchase to avail of this benefit.
Conclusion #
The books and periodicals allowance is an important benefit that encourages employees to continue their learning and development. This allowance is a non-taxable benefit that is provided in addition to the employee’s regular salary. The books and periodicals allowance is aimed at promoting continuous learning and development among employees. However, it is important for employees to provide proof of purchase to their employer to avail of this benefit.
