Objective:

To assist employees having ‘Flexi Basket’ as part of their compensation structure in availing Income
Tax benefit on flexi Basket’ as per Income Tax guidelines.

Scope:
All employees with ‘Flexi Basket’ as part of their compensation structure.

Applicability:
The process and guidelines applicable to all permanent employees of HCL Technologies Limited, HCL
Infrastructure Services, HCL BPO Limited and other offshore entity on India payroll.

Process Details: -
1. ‘Fuel Reimbursement and Vehicle Maintenance’ is part of ‘Flexi Basket’. Employee can
claim Income Tax benefit under below scenarios-
If employee hasn’t availed Company Car Benefit: Employee may opt or may not opt for
reimbursement of ‘Fuel Reimbursement and Vehicle Maintenance’ component. Maximum
amount employee can get tax benefit by opting for Fuel Reimbursement and Vehicle
Maintenance is given below.

Vehicle Category (owned by employee) Eligible amount for Income Tax benefit (per
month)
Two wheeler INR 900
Four wheeler (<1600 cc) INR 1,800
Four wheeler (>1600 cc) INR 2,400

If Employee avails Company Car Benefit: Employees availing car under Company Car Benefit shall be
eligible for full amount under ‘Fuel Reimbursement and Vehicle Maintenance’ mentioned in the
Compensation structure under Flexi Basket on producing required documents. However, by doing so, he
is liable for perquisite tax on the amount mentioned in the table above from the date of car delivery

1. If employee opts for Fuel Reimbursement and Vehicle Maintenance’ as a reimbursement can
he/she claims anything through GCS till end of flexi cycle* as given below
*E2 & E3 : July to June/ E4 & Above : October to September.
2. You can declare your ‘Fuel Reimbursement and Vehicle Maintenance’ in Flexi Declaration
application in MYHCL (MYHCL >> App Central >> Finance >> My Flexi Declaration)
 Help and Instructions
 Please declare your flexi components at my hcl under Flexi Declaration
application. Under Reimbursement column, please put the amount which
can be claimed through CVCS as non –taxable. Unclaimed flexi amount
shall be paid as taxable at the end of Flexi Cycle every year. Once you fill
up the amount under reimbursement column, the balance amount under
monthly salary column which is taxable shall auto gets populated. The
effective date of flexi declaration is from the date from which your
compensation has been restructured or from flexi cycle which is latest.

 Fuel and Maintenance – By default fuel & maintenance stored under

reimbursement head. If employee wants to take along with monthly salary
then he needs to put zero under amount to be claimed as reimbursement
while doing flexi declaration.

 If you want in the reimbursement mode then please give a new flexi
declaration and enter the amount in the 2nd column (Amount to be claimed
as Reimbursement P.A.) Once you give the flexi declaration then you can
start claiming your bills through the below link as non taxable on a monthly
basis and the same will be credited to your account directly.

Myhcl.in -> My Transaction -> Cash Claim -> New flexi claim.
 For Maintenance & Insurance select F&M (VMR) category. You can clam
Fuel bills, Maintenance bills & Insurance amount in Fuel and Maintenance
component.

 The flexi cycle is July to June upto E3 band and October to September for
E4 and above band employee and unclaimed flexi amount automatically will
be paid along with July month salary upto E3 band employee and In the
month of October for E4 and above band employee.

 Tax Impact on Fuel & Maintenance To claim your bills as non- taxable, first
you have to give the Vehicle declaration in the below link with RC copy:

 Myhcl -> My Transactions -> Vehicle Declaration

 You have to declare any one of the vehicle (Car OR two-wheeler). For Car
upto 1600 CC engine capacity Rs.1800/- can be claim as non- taxable and
more than1600 CC engine capacity vehicle Rs.2400/- as nontaxable.
Employee owned two wheeler can claim Rs.900 /- P.M as an exempted as
per new tax rule.
 Leave Travel Allowance -
LTA Encashment while in Service
 Employees who do not wish to avail the tax benefit on their LTA, have the
option of encashing their LTA, which will be paid to them through monthly
payroll as taxable please put zero under amount to be claimed as
reimbursement while giving flexi declaration.
 In case of LTA encashment (Taxable) No leave is required. Employee needs
to go to LTA Application available in My HCL & has to tick the box
appearing under "I want to claim" & then has to press the submit button.
The claim will be submitted to ES. Employee has to submit the claim in the
system on or before 20th of every month to get the amount paid along with
same month payroll.

Leave Travel Allowance on Resignation

 An employee who has resigned from the services of the organization the
balance LTA if any will be included in their full and final settlement by
default.
 All balance LTA will be paid automatically as taxable till date of departure
in case employee is deputed to onsite on long term assignment.

Taxability

 If the employee takes the LTA through the salary, the tax liability will be
borne by the employee.
 Tax rebate is applicable twice in block of four years. Current block period is
1-Jan-2018 to 31-Dec-2021.

Please refer LTA policy for more detail.

 Vehicle lease Rental/Car Lease Rental - It will automatically come in
your monthly salary by default as taxable income in the form of Car
Allowance. If you opt car under company car lease scheme then the EMI
will adjusted from this components. Please note Vehicle lease Rental
components will remain on disable mode while giving flexi declaration
because it will pay by default along with monthly salary. To know more
about company car lease scheme please go through with company car lease
policy in Policy HUB.

 Your Car Allowance shall be paid as taxable and this is NON-EDITABLE

field at Flexi Declaration application. The tax liabilities/ benefits for the
employees who have their own vehicle (who have declared the vehicle
declaration at my HCL) and who have taken the Car under Company Car
Scheme shall be applicable as per the Income Tax Rule accordingly.