> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Flexible Benefits

> Organisations provide [flexible benefits](https://razorpay.com/payroll/learn/flexible-benefit-plan-fbp-component/) for employees to customise their CTC. Employees can declare the list of benefits and upload proofs to claim reimbursement. After declaration, a portion of your CTC is allocated every month. This becomes the employee's flexible benefit plan.

Most flexible benefits are non-taxable, which employees can utilise to reduce tax liability.

### What benefits are taxable/tax-free in both the tax regimes?

Following is the list of taxable and tax-free benefits in both regimes.

## Flexible Benefit | Income tax Section | Old Regime | New Regime

## Meal/Food allowance | Section 10 | ✓ | x

## Books and Periodicals allowance | Section 10 | ✓ | x

## Attire/Uniform allowance | Section 10 | ✓ | x

## Learning and Development allowance | Section 10 | ✓ | x

## Leave and Travel (LTA) allowance | Section 10 | ✓ | x

## Conveyance allowance | Section 10 | ✓ | ✓

## Travel allowance | Section 10 | ✓ | ✓

## Daily allowance | Section 10 | ✓ | ✓

## Telecommunication or Phone allowance | Section 17 | ✓ | ✓

## Fuel allowance | Section 17 | ✓ | ✓

## Driver's salary | Section 17 | ✓ | ✓

## Gadget or Device allowance | Section 17 | ✓ | ✓

## Health and fitness allowance | Section 17 | ✓ | ✓

Gift allowance | Section 17 | ✓ | ✓

**SUCCESS**

**Available Now!**

Watch the video on to how to [declare flexible benefits and upload proofs](/payroll/video-tutorials#declare-flexible-benefits-and-upload-proofs).

## Declare Benefits

Ensure the Flexi-benefit plan (FBP) declaration window is open. Contact your HR/Manager to understand when the window is open.

To declare benefits:

1. Log in to the Payroll Dashboard.

2. Navigate to **Reminders** on the home page and click **Declare now** against FBP.

3. On the **Flexible benefit plan declaration** page, click **Edit Declaration**.

4. Select the check boxes for the components listed to choose the flexible benefits to declare.

<Warning>
  **Watch Out!**

  Components are available to you basis your chosen tax regime. To change your tax regime, contact your Manager/HR.

  1. Click **Submit declaration**. You can also click **View how much tax you'll save** to check your tax savings.

  2. Click **Continue** in the **Save declarations** pop-up modal.

  You have succesfully saved your declarations.

  You can edit the declared components until the window is open. You cannot declare/edit components after the window closes.
</Warning>

## Upload FBP Proofs

To upload flexible benefits proofs:

1. Log in to the Payroll Dashboard.

2. Navigate to **Reminders** on the home page and click **Upload proofs** against FBP.

3. On the **Flexible Benefits** FY page, select the **Flexible Benefit** from the drop-down menu. Only those benefits you declared are available for proof upload.

4. Enter the amount for reimbursing as part of FBP. For example, if you declared ₹2000 for Fuel Allowance, check your bills and enter the total amount spent on fuel bills.

### What if my proof amount exceeds my declared amount?

Consider the above example where the amount declared is ₹2000. Your proof upload amount is ₹3000. Here, the proof amount is greater than the declared amount.

In such cases, your organisation may do the following two things:

* Pay only the approved amount for that month, that is ₹2000 only.
* Prorate the proof amount and pay only the undeclared amount from the FBP allocated for that month. The unpaid amount is adjusted in the upcoming month/s when the proof upload amount is less than the declared amount.

  Suppose your fuel bills are less than the declared amount in the upcoming month. In that case, your organisation can adjust the unpaid FBP amount.

1. Provide a description for the proof uploaded. This is optional.
2. Click **Choose a file** in the **Images or documents (maximum 5MB each)** and add the proofs.

<Warning>
  **Watch Out!**

  * You cannot withdraw proofs once uploaded.
  * You can only upload a single file in **Images or documents (maximum 5MB each)**. If you upload a new file, the older file is overwritten.

  1. Click **ADD REQUEST** to submit proofs.

  You have successfully submitted proofs for the flexible benefits you declared.

  After you submit the proofs, you can view the FBP request in the **Past Requests** section. Click the **#1** box to view the attachments added.
</Warning>

## Revised FBP Limits

The following perquisite and allowance limits have been revised. These changes are applicable from FY 2026-27 onwards.

<Warning>
  **Watch Out!**

  Food/meal wallet is now eligible under the new tax regime as well. There is no explicit exclusion for this benefit under the new scheme.

  ## Benefits | Old Limit | New Limit

  ## Food/meals card | ₹50 per meal | ₹200 per meal

  ## Child education allowance | ₹100 per month per child | ₹3,000 per month per child

  ## Hostel expenditure allowance | ₹300 per month per child | ₹9,000 per month per child

  ## HRA exemption | 50% of salary for 4 cities | 50% of salary for 8 cities (Bangalore, Hyderabad, Pune, Ahmedabad)

  ## Transport allowance | 70% of allowance or ₹10,000 per month, whichever is lower | 70% of allowance or ₹25,000 per month, whichever is lower

  ## Gift cards/coupons | ₹5,000 per year | ₹15,000 per year

  ## Interest-free loans | Interest not taxable for loan below ₹20,000 | Interest not taxable for loan below ₹2,00,000

  Motor car perquisite | ₹1,800 per month for CC below 1.6L, ₹2,400 per month for CC above 1.6L, ₹900 for driver | ₹5,000 per month for CC below 1.6L, ₹7,000 per month for CC above 1.6L, ₹3,000 for driver
</Warning>

### Related Information

* [IT Investments Declarations](/payroll/employees/declarations)
* [New TDS/TCS Section Codes](/payroll/tax-verifications/tax-codes)
* [Other benefits](/payroll)