Shout out to HR Teams – Save some tax for your employees with Zeta Optima

Looks like a dream come true offer for the employees! The days of punching the bunch of colleterals while submitting the reimbursements seem over! I found this info and sharing as is, as it looks very interesting but only HR personnel would be rightly placed to evaluate and take it ahead.

HR TEAM needs to look at this – 

These offers can help save tax and resources for both employees and employers.

(Information sourced from ZETA – Information included as is)

The Zeta payment suite gives users access to over 11 lakh outlets and can be used to make online payments as well.
Zeta Optima is fully compliant with the Income-tax act and RBI guidelines. It’s the only solution that has been certified compliant through a written opinion by every one of the big 4 Accounting firms: KPMG, Ernst & Young, PriceWaterHouseCoopers and Deloitte.
Optima is used by over 70,000 users, across 600 organisations that:
       have eliminated paper while managing employee benefits
       send grants instantly to employees
       outsource claim verifications
       customise the programme and set usage rules
       generate on-demand digital reports
     receive audit-ready statements

The Optima suite of smart benefits includes:
Optima Meal Vouchers
An electronic meal voucher programme that replaces non-compliant paper vouchers and meal cards, with a 100% compliant, fully digitised solution. Optima Meal Vouchers can be spent via the Zeta app and the Super Card at 3 lakh+ outlets and can help your employees save up to Rs 11,880 every year. Optima Meal Vouchers can also be spent at office cafeterias with the Zeta Super Tag.
Optima Medical Reimbursements
The first fully digitised medical reimbursements programme in India, Optima Medical Reimbursements lets employees file claims on-the-go via the Zeta app. Through Optima Medical Reimbursements, employees can save up to Rs 4,500 in taxes, every year. Optima Medical Reimbursements grants can be spent via the Zeta app and the Super Card.
Optima Fuel & Travel Card
A digitised solution to manage fuel and transport expenses, employees receive grants from their organisations on their Optima Fuel & Travel Card. The balance in this virtual card can be spent at any fuel or vehicle maintenance station via the Super Card. Employees also have the option to upload bills via the Zeta app and file for fuel or transportation reimbursements. Employees can also use the Fuel & Travel Card to file claims against costs incurred during their commute to work. On the whole, employees can save up to Rs 11,880 in a year.
Optima Communications Card
The Optima Communications Card is a digital solution that helps users save up to 30% in taxes on communications bills. Employees receive their communications grants on their Optima Communications Card, which they can use to pay mobile, landline, data card and internet bills via the Zeta app.
Optima Gadget Card
The Optima Gadget Card not only allows employees to save up to 30% in taxes on the purchase of gadgets, it also helps organisations save tax on the gadget’s depreciation. Employees receive grants to purchase gadgets in their Optima Gadget Card, which they can either claim on a monthly basis or accumulate to purchase a gadget at the end of the year with the Super Card or via the Zeta app.
Optima LTA Card
Definitely the most compliant LTA programme out there, the solution is the first digitised LTA claims platform in India. Optima LTA Card ensures your claims are in line with all compliance guidelines and gives organisations the flexibility to outsource verifications of travel documents to Optima. Employees can upload relevant documents via the Optima LTA Card on the Zeta app and receive reimbursements. They can save up to 30% in taxes with the Optima LTA Card.
Optima Gift Card
With the Optima Gift Card, employees can receive tax-free electronic gift vouchers of up to Rs 5000 in value from their employer. These gift vouchers can be spent at over 11 lakh outlets and online through the Zeta Super Card or the Zeta app.
Optima Books & Periodicals Card
Designed to encourage, sharpen and develop new skills, the Optima Gift Card is a digital solution to claim reimbursements on journals, reading materials, books and more. Employees receive grants in their Optima Books & Periodicals Card, which they can spend using the Zeta Super Card. Through the Optima Books & Periodicals Card, employees can save up to 30% in taxes.
Optima is built to be comprehensive, it can be tailored to include any tax perquisite that a company may wish to offer. It is also flexible, allowing organisations to customise how each programme is implemented.
This table will give you a break-up of how employees under different tax brackets can save maximum amount of tax:

Things you need to know about your Leave Travel Allowance (LTA)

There are dual benefits for Indian employees about traveling. While you take an official break for traveling any destination in India with your family, you also save tax on your travel expenses with LTA, which is provided by employer. It is only smart to make most of this benefit. This post aims to elaborate on certain features of LTA as a savings tool.  

What is LTA?
  • ·         #Leave Travel Allowance is an allowance provided by employers for domestic travel for the employee and immediate family
  •         It covers only the travel expense by air, train incurred during the travel, it also covers taxi and auto rickshaw only if train route is absent
  •      It covers the travel expenses incurred by the individual and their immediate family. Other family members are excluded from availing Leave Travel Allowance
  •         One can make a claim only twice in a block of four years, the present block is Jan 2014 – Dec 2017
  •      #LTA also can be carried to the next block if it is not utilised, if under utilised the balance amount can be added
  •          International travel expense cannot be claimed under LTA
  •          You can claim your Leave Travel Allowance if you haven’t travelled, but the amount will come under taxable income
  •         LTA is fully tax exempted under Section 10(5) of the Income-Tax Act, 1961, Rule 2B

Limitation of LTA
Like any other exemption rules, LTA also has its limitations. The companies have certain eligibility criteria for LTA.  If the allowance of the previous block is not exhausted, then one journey can be carried forward to the next block. However, the balance has to be exhausted within the first year of the next block. The allowance is capped by employers; the claims above the exemption limit will not be processed. LTA can only be claimed if the employee is part of the travel, family including spouse, children, brother and sister if they are dependants.
How you make most of LTA
As you can only claim twice in 4 year block, planning in advance helps. Ensure, you are taking prior written permission from the employer. Though air travel is allowed, it covers the minimum airfare of economy class. The road travel exemption is limited to the AC1 rail fare by the shortest route.
You need to keep the proof of your travel, tickets and copy of e-tickets in place.
Innovations in claiming LTA online – to help HR professionals an employers
Zeta, a Fintech startup, recently launched fully digital Leave Travel Allowance (LTA) solution, #Optima LTA Card, to help organisations manage employees’ leave travel allowance claims/ reimbursements digitally and enable employees to submit claims instantly. Built on digital platform, is designed to process LTA claims the paperless way. Employees are now empowered to submit their travel claims digitally and thereby avoid extensive paperwork. It is compliant with all legal mandates set by the Income Tax Department. Zeta team at the back-end tracks the shortest distance between two destinations using a government-approved database and thereby enable accurate assessment.

Organisations can be free of verifying paper bills manually since all verifications will be handled by Zeta Optima at the back end. Human Resource professionals can use this platform to digitally store bills for over seven years and can track LTA bills and claims online.

Happy traveling 🙂 

10 reasons Why we are obsessed about ELSS mutual funds

#ELSS is a clear winner amongst the Tax saving instruments in India 
Under section #80c of the Income tax act, there are many instruments one can opt for to save tax and create a wealth kitty. In the last post on Tax saving instruments under section 80C, I have listed down all the options of investments, insurance and expenditures. Here, I would like to elaborate on the specific product “Equity Linked savings scheme” Mutual Funds, and a basic comparison with the other options in terms of liquidity, lock-in, potential return etc.
Let me begin with the table of popular investment tools under 80C and their features.
Instrument
Maximum investment amount
Lock-in
Potential return
Actual tax benefits
#PPF
Rs. 1,50,000
15 years.
8-9% per annum, compound interest
Triple exemption benefit
Sukanya Samrudhi Yojana
Rs. 1,50,000
Only for daughters, the lock in depends on the daughters age
8-9%, compound interest
Triple exemption benefit
NSC
Rs. 1,50,000
5 years
8-9% per annum, compound interest
Returns are taxed as per laws
#Tax saver Deposits
Rs. 1,50,000
5 years
7-9% per annum, compound interest
Returns are taxed as per laws
#ULIP
Rs. 1,50,000
10 years onwards.
As per equity market movement. After deducting various charges
Triple exemption benefit
#ELSS mutual funds
Rs. 1,50,000
3 years
As per equity market movement.
Triple exemption benefit
#RGESS
Rs. 50,000
3 years
As per equity market movement.
50% tax relief on returns
1. The mutual fund has minimum #lock-in period of 3 years amongst the tax saving instruments.
2. Though it has a lock-in period, the open ended #ELSS funds, don’t have a maturity date.
3. The funds come with multiple options of growth, dividend option (dividend reinvestment is currently discouraged by the regulator in recent times, hence getting discontinued for the new investment options, because of its complex nature of 3 year llock-in for every purchase)
4. The ELSS schemes enjoy triple tax exemption benefits on redemption
5. Unlike PPF, ULIP, ELSS mutual funds don’t carry an obligation of investment amounts, hence it could be an one time investment or repeat depending on investor’s wish.
6. Unlike insurance plan, investor can buy different plans basis his research and recommendations
7. Minimum investment is as low as Rs. 500/-
8. The dividend earnings are tax-free in the hands of the receivers
9. It can be held as long as the investor wants; hence, the potential of high returns of 12-15% can be easily achieved in long-term, 5-7 years period.
10. The cost of investment is very low compared to the endowment insurance products, which doesn’t reflect  too much as the returns on the investment over a long term compensate well beyond the cost implications and inflation.
A hypothetical return graph of tax saving instruments over 3, 5, 7.10 year period
initial investment
3 YEARS
5 YEARS
7 YEARS
10 YEARS
PPF
1,00,000
130864
156568
187320
245135
NSC
1,00,000
127023
148984
174742
221964
ELSS
1,00,000
156394
210718
283911
444021
Assuming a 15% return on ELSS for the period
Top 5 #ELSS Mutual funds for reference purpose –
Scheme name
1 year
2years  
3 years
5 years
ICICI Pru RIGHT Fund (G)
10.9
7.2
24.4
21.2
Axis Long Term Equity Fund (G)
8.8
9.2
26.5
21.0
Reliance Tax Saver (ELSS) (G)
13.9
6.2
29.9
20.4
DSP-BRTax Saver Fund (G)
20.1
12.7
25.5
19.7
Birla Sun Life Tax Plan (G)
12.6
12.3
24.5
18.1
Suggestion for the young investors would be to buy ELSS fund, and treat it like  a PPF account, invest regularly, preferably through SIP, for 15 years and stay invested through the term. You will end up saving a big amount for yourself. 🙂 Happy investing. Happy Saving!

10 changes at Provident fund in last one year has redefined how Provident fund serves Indian work force

Latest – App to check PF balance, regularising inoperative PF accounts, earning 8.8%
As you are reading my article, which is available only for online readers, chances are very high that you can easily trace and access your unclaimed/ inoperative PF accounts. Many a times its sheer inertia, sometimes documentation issues, complication with previous organisation holds many professionals update the PF account when they quit/change jobs. There are other reasons like shifting cities, relocating to different country or death of the account holders of creating a pool of 42,000 crore in 9.7 crore account. I appreciate the move of Government of India to continuing paying interest on these accounts. 

EPF is an important saving cum investment instrument for mre than 10 crore indian employees. With the new rules, employees are benefited for smooth tracking and transactions. A Big Thank you to the Modi Government. It is not all roses without thorns, there were  major retaliation by public on few proposal by government this budget, one was taxation on PF accrued.
I have also not yet forgotten the July 2016 proposal of finance ministry of utilising portion of the funds from inoperative accounts to be utilised in senior citizen welfare schemes. Owing to strong opposition and pressure from labour unions, the government actually did an U-TURN and made it an opportunity by regularising the PF accounts. Not only increasing the social security,  government also managed to garner some popularity of working class vote bank.  
There has been some interesting update on the Employee Provident funds in India during last one year. Listing down some important developments.
  • ·         PF claims in cases of death set to be settled in a week
    ·         PF claim settlement period brought down to 20 days
    ·         EPFO does away with employer’s signature for PF withdrawal
    ·         Employees’ Provident Fund Organisation orders EPF to be released before retirement
    ·         UAN is a must for smooth transfer of Provident Fund
    ·         EPFO to pay 8.8% interest on “inoperative” accounts: Govt to issue notification soon
    ·         Employees’ PF Organisation services soon at 2 lakh common service centres of IT Dept In a move to increase participation in the indian equity market, EPFO has invested over Rs 9000 crore in Exchange Traded Funds
    ·         No tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1.
    ·         CMPFO launches app to view PF balance

  All’s well which ends well. Hope government keeps up with its promises to the working class Indians and doesn’t interfere with this money. 
   About EPF
     Employee Provident Fund is one of the most important employee benefit scheme in India. The product is not an optional instrument. For every registered organisation with 20 employees has to mandatorily register for EPF (except exempted quota). A company can voluntarily register for EPF with employees less than 20.
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