Overview of Flexi Basket Perquisite

A Flexi Basket Perquisite (often just called a Flexi Basket or Flexible Benefit Plan) is a component of an employee's Cost to Company (CTC) package that allows them to customize their salary structure based on their individual needs and tax-saving preferences. It's essentially a "basket" of allowances or perks that an employee can choose from, depending on what's offered by the employer.

Key Features of Flexi Basket Perquisites:

1. Customization: Employees can allocate a portion of their salary towards different benefits.
2. Tax Efficiency: Some of these benefits are tax-exempt or come with tax advantages, reducing the overall tax burden.
3. Common Components:
   • Leave Travel Allowance (LTA)
   • Meal Coupons (like Sodexo)
   • Fuel or Transport Reimbursement
   • Driver Salary
   • Books and Periodicals Allowance
   • Gift Reimbursement
4. Proof Submission: Employees usually need to submit bills or proofs for reimbursement for tax exemption.

Example:

Suppose your company gives you a ₹1,00,000 annual flexi basket. You might choose:

• ₹30,000 for books and periodicals allowance
• ₹20,000 for reimbursement of fuel
• ₹15,000 for meal coupons
• ₹10,000 for Driver Salary
• ₹25,000 for LTA

This allocation can help reduce your taxable income, depending on how each component is treated under the Income Tax Act.

Configuration and Workflow:

Flexi Basket (Income Tax Perquisite) Bills:

Navigate->Settings->Company Setup->Portal Settings->Common Settings-> Consultant Income Configuration-> Flexi Basket (Income Tax Perquisite) Bills->Select appropriate option as per company policy as stated below:

There are three different options/ways to collect/submit bills in application as mentioned below:

• NA

1. Each month, the company pays out the selected perquisites (like fuel, meal, Attire Reimbursement) as part of your monthly salary.
2. Towards the end of the financial year (usually Jan–March), companies ask employees to submit actual bills/receipts for expenses claimed under these perks. This is done through your Investment Declaration Portal or HRMS tool.

• Pay & collect bills for perk exemption

1. Each month, the company pays out the selected perquisites (like fuel, meal, Attire Reimbursement) as part of your monthly salary.
2. Based on the Allow Flexi Basket Claim Submission to Start From Day and End on Day in ESS employee portal Submit Perquisite Bills section will open to submit bills for perk exemption based on configuration in Common Settings and option functionality.

• Pay perk payment through Reimbursement on bill submit
  1. The amount for the perk is not paid out in your salary every month. Instead, it is kept aside as a reimbursement reserve within your CTC.
  2. You submit actual expense bills to your employer - monthly or quarterly depending on company policy.
  3. Once bills are verified, the company reimburses the exact amount you claimed - tax-free, directly in your salary or separately as a reimbursement payout.

Flexi Basket Perk salary header Configuration Parameters:

Navigate->Settings->Staffing Masters->Salary Header->Click on New to create Flexi Basket Perk salary header and refer below snapshots

Navigate->Settings->Company Setup->Portal Settings->Approval Settings->Click on “+” button to add Approval Type and Approver Type from the drop down menu.

Navigate->Settings->Company Setup->Portal Settings->Common Settings-> Consultant Income Configuration-> Flexi Basket (Income Tax Perquisite) Bills->Select Pay & Collect Bills for Per Exemption->To update FBP claim submission Start and End Day

• In HR / Core users interface – how to review FBP information
• If Employee submitted through ESS reimbursement then Core user can able to view from employee history as shown below

Click on TDS computation sheet->Select Financial Year>to view processed perquisites in TDS computation sheet