Trending @Cognizant; Query related to FBE
I’ve taken a prepaid food card from HDFC. To load money onto the card, I have to set it up in my pay portal. When I define an amount there, it gets adjusted from my special allowance. For example, if my special allowance is ₹10,000 and I allocate ₹2,000 as food reimbursement, then my special allowance becomes ₹8,000, and the ₹2,000 is loaded onto my HDFC food card. Since the money is deducted from my special allowance, which is already part of my salary, why is it referred to as a “reimbursement”? Or am I misunderstanding the term?
It is not reimbursement but rather than a component of your salary. In case you draw it to your account then tax is deducted and in case it is drawn to HDFC food card then this amount is non taxable.
As per my knowledge it is tax saving purpose Cognizant will give only extra benefit for wifi reimbursement and according to your project It will not deduct from salary
