WFH could mean higher tax for some, altering pay structure may give relief

But many expenses incurred during WFH can't be treated as non-taxable until law is amended

If you think work from home due to Covid-19 has benefited you by cutting down expenses like daily commutes and eating out, think again. You may end up with a higher income-tax (I-T) bill for the current financial year (2020-21). The reimbursement components of your salary require you to furnish bills before they become tax-exempt. Producing them may be difficult this year.

According to Suresh Surana, founder, RSM India: “Reimbursements like motor car, entertainment, conve­yance expenses, etc will be taxable as they are linked to actual expenses incurred while performing your duties.” Take the instance of conveyance allowance. Employees couldn’t