ACCOLITE CONFIDENTIAL

Flexible Benefit Policy

Dated: March 06, 2017

AUTHORITY The Department of Finance.

AUTHORIZATION Leela Kaza, Chief Executive Officer, Accolite Software India Pvt. Ltd.

Questions regarding the application of this policy should be directed to the finance
department at indiafinance@accolite.com

The Finance Department reserves the right to revise or annul this policy at any time.
 ACCOLITE CONFIDENTIAL

Flexible Benefits Components:

Flexible Benefits (FBP) are those components which are paid to employees against submission of bills so that the employee
gets tax benefit.

Components of the flexible benefit plan are as follows:

1. Medical Reimbursement Maximum limit is Rs.15, 000/- per annum. Rs1,250/- per month.
2. Meal Cards Maximum limit is Rs.26, 400/- per annum. Rs.2,200/- per month.
3. Leave Travel Allowance Maximum limit is two months Basic Salary.
4. Telephone and Mobile Reimbursement Maximum limit is Rs42,000/- per annum, Rs3,500/- per month
5. Internet Reimbursement - Maximum limit is Rs.18, 000/- per annum, Rs1,500/- per month.
6. Children Education allowance Maximum limit is Rs.2, 400/- per annum.
7. Vehicle Reimbursement and Driver salary - Maximum limit is Rs.39, 600/- per annum, Rs.3, 300/- per
month including driver salary.

MEDICAL REIMBURSEMENT:

Applicability:
Applicable to all full-time employees of Accolite.

Guidelines and Coverage

Accolite will reimburse domiciliary medical expenses incurred by the employee for self and dependents (spouse, children,
and solely dependent parents OR solely dependent brothers and sisters). Expenses that can/cannot be claimed under
medical reimbursements are as per details below:

Coverage of Medical Reimbursements Not covered under Medical Reimbursements

Doctors fees and Diagnostic fees Baby food and diapers

Health Checkup and Medicines Energy Food

Expenses incurred on dentures, extraction and filling of Cosmetics like whitening of teeth, beauty contact
tooth, braces and spectacles with power lenses with no power etc.

Toiletries etc.
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Medical Reimbursement can be claimed by submitting the declaration form. However, it is employees responsibility
to maintain all the required reimbursement supporting documents which is required to be submitted when asked by
the company or any tax authorities. Accolite would not take any responsibility for genuineness of the documents
maintained by the employees.

Medical Reimbursement subject to an annual limit of INR15,000

Process for opting into this Benefit

Declaration
At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Medical reimbursement
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.

Tax Implications

Medical Reimbursement up to Rs.15, 000/- are exempted from Tax.

Note <1>: The taxability has been considered based on the present tax laws. Accolite India does not accept any
responsibility whatsoever for the correctness or otherwise of what has been stated in this regard. Tax liability is subject
to change.

Note <2>: It is your responsibility to ensure that all documents submitted are genuine. Submission of fraudulent claims is
unethical and against Accolites Corporate Business Principles. If found guilty you will be subject to disciplinary action

MEAL CARD:

Meal card is a facility offered by third party vendors for specific value to the customer. This meal card can be used instead of
cash to make purchases at various food outlets / grocery shops which have tied up with meal card vendor and recognize the
meal card as valid form of payment.

Maximum monthly limit on the meal card is Rs 2,200/- per month.

 ACCOLITE CONFIDENTIAL

Applicability:
Meal cards are applicable to all full-time employees of Accolite.

Process for opting into this Benefit

Declaration
At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Meal Card
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.

LEAVE TRAVEL REIMBURSEMENT:

Overview
Leave Travel Assistance (LTA) is a benefit where you can allocate a part of your Flexible Benefit Plan towards
LTA and claim tax benefits. LTA is a facility where reimbursements of travel expenses (air/train/bus/ship) incurred
by any employee while on vacation are exempt from Income Tax.

Eligibility
Accolite employees who have not claimed 2 (two) LTA in the current block - The current block as specified by
the Income Tax authorities is from 01-Jan-2014 to 31-Dec-2017.
Leave Travel Allowance is subject to an annual limit to the extent of Two Months Basic Salary of an
individual

LTA Guidelines

Domestic Travel: Tax exemption under LTA can be claimed only for travel undertaken in India.

Claimants: LTA can be claimed for self, spouse, dependent children and dependent parents. However, it
must be noted that you - the employee must be a part of the trip for which LTA is claimed. Any part of the
travel made by the family members without the employee being a part will not be considered.

Expenses Covered: Tax exemption under LTA can be claimed only for travel. Other expenses incurred
during the trip namely lodging, food etc., are not considered.
 ACCOLITE CONFIDENTIAL

Modes of Transport: Air, train, bus and ship. For details of tax exemption refer to the section Tax
Implication below.

Eligibility/Block Period: LTA can be claimed for 2 (two) trips in a block of 4 (four) years but for one trip in
each calendar year (Jan - Dec). The current block is Jan 2014 to Dec 2017. If the employee has not claimed
LTA for 2 (two) trips in each block, one trip can be carried forward to the next block of which one must be
claimed in the first calendar year of the next block.

There will also need to be a time gap of 6 months between 2 trips

Round Trip / Package Tour: For round trips/package tours, tax exemption will be restricted to the farthest
place visited across the shortest route or the actual fare (whichever is lower is exempt from tax). For details
on tax exemption, refer to section on "Tax Exemption / Implication" below.

Annual Leave: To claim LTA tax exemption employee must have taken at least one day Annual Leave.

Submission of LTA Claim: LTA claim must be submitted within 1 week of completion of travel and in the
same financial year.

Documents to Claim Tax Exemption

Following are the documents required to be submitted by employees to claim LTA.

1. Ticket
2. Proof of Annual Leave Availed
3. Form 16 for previous 2 years/previous employment

1. Ticket
Air Travel: Original ticket and original boarding pass.
Bus: Original tickets.
Train: Original tickets.
Note: In case of round trip produce the ticket / boarding pass of the entire travel.

Online Booking (e-Ticket)

In case of online ticket booking, you will need to submit a print copy/photocopy of the online ticket
attested by you (your signature on the print copy of the online ticket). For travel where boarding pass is
issued the same needs to be submitted and these two documents will suffice.
 ACCOLITE CONFIDENTIAL

For travel where boarding pass is not issued, in addition to the print copy/photocopy of the online ticket
you will also have to provide such documents that will authenticate your travel. The documents which
may be submitted are hotel/restaurant bills, receipts of purchase of items in the place of visit,
telephone call receipts and such other documents in your possession that will substantiate your travel to
the said destination.

2. Proof of Annual Leave Availed

Employees must submit leave approval print out email and submit this along with other documents.

Tax Exemption / Implication

Air Travel: Tax exemption is limited to Economy Class Air Travel.
Train: The tax benefit is extended to travel up to First Class A/C.
Bus: Tax exemption is limited to actual fare or first class A/c fare in train whichever is lower.

Process for opting into this Benefit.

Declaration

At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Leave Travel Allowance
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.

Round Trip:

For round trips/package tours, tax exemption will be restricted to the farthest place visited across the shortest
route or the actual fare (whichever is lower is exempt from tax).

E.g. If an employee travels from Bangalore to Delhi via Bombay, Gandhinagar and then to Delhi and on his way
back he travels from Delhi to Calcutta, then to Madras and finally back to Bangalore. In this case the tax
exemption will be restricted to farthest place visited across the shortest route. In the example, here, the farthest
distance traveled is Delhi and the shortest route to reach there is to take a flight/train/bus from Bangalore to Delhi
and Delhi to Bangalore. Accordingly, only the flight/train/bus fare from Bangalore to Delhi and Delhi to Bangalore
will considered for tax exemption
 ACCOLITE CONFIDENTIAL

The fare will be calculated based on the standard fares list which IT department maintains.

Note <1>: The taxability has been considered based on the present tax laws. Accolite does not accept any
responsibility whatsoever for the correctness or otherwise of what has been stated in this regard. Tax liability is
subject to change.

Note <2>: It is your responsibility to ensure that all documents submitted are genuine. Submission of fraudulent
claims is unethical and against Accolites Corporate Business Principles. If found guilty you will be subject to
disciplinary action.

TELEPHONE AND MOBILE REIMBURSEMENT:

Applicability:
Applicable to all full-time employees of Accolite.

Guidelines and Coverage

Accolite will reimburse expenses incurred by you on

o Fixed rental, call charges for Land lines plus applicable taxes thereon.
o Mobile call charges (Postpaid only, prepaid is not allowed),
o Expenses towards Value added services are not allowed
o Any accessories or Mobile handset purchase also will not be allowed a part of this reimbursement.
The Phone / Connection must necessarily be registered in your name
The supporting document towards expenses incurred towards Telephone, Mobile and Internet should in Original.
Xerox copies if submitted will not be considered for tax exemption.
The limit for claiming Telephone and Mobile charges, on a monthly limit of INR 3,500; OR an annual limit of
INR 42,000

Process for opting into this Benefit

Declaration

At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a declaration
to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Telephone Reimbursement
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
 ACCOLITE CONFIDENTIAL

The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.

Note <1>: The taxability has been considered based on the present tax laws. Accolite India does not accept any
responsibility whatsoever for the correctness or otherwise of what has been stated in this regard. Tax liability is
subject to change.

Note <2>: It is your responsibility to ensure that all documents submitted are genuine. Submission of fraudulent
claims is unethical and against Accolites Corporate Business Principles. If found guilty you will be subject to
disciplinary action

INTERNET REIMBURSEMENT:

Applicability:
Applicable to all full-time employees of Accolite.

Guidelines and Coverage

Accolite will reimburse Internet expenses incurred by you which were used by the employee outside office
for official use.
The internet connection must necessarily be registered in your name
The supporting document towards internet charges should be submitted in in Original. Xerox copies if
submitted will not be considered for tax exemption.
The limit for claiming Telephone and Mobile charges, on a monthly limit of INR 1,500; OR an annual limit of
INR 18,000

Process for opting into this Benefit

Declaration
At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Internet Reimbursement
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.
 ACCOLITE CONFIDENTIAL

Note <1>: The taxability has been considered based on the present tax laws. Accolite India does not accept any
responsibility whatsoever for the correctness or otherwise of what has been stated in this regard. Tax liability is
subject to change.

Note <2>: It is your responsibility to ensure that all documents submitted are genuine. Submission of fraudulent
claims is unethical and against Accolites Corporate Business Principles. If found guilty you will be subject to
disciplinary action

CHILDREN EDUCATION ALLOWANCE:

Applicability
Applicable to all full-time employees of Accolite who has children.

Guidelines and Coverage

This component should be opted by those employees who are having school going children.

School going children includes those to Nursery, LKG and UKG.

The limit is Rs.100/- per child, per month and maximum for two children
Per annum limit would be Rs.1, 100/- per annum if employee is having one child and Rs.2, 400/- for two
children.
Employees should not opt for any in between amount such as Rs.50/- or Rs.150/- etc.
No supporting document will be required to be submitted by the employee and company will be giving this
allowance purely based on the employee Declaration

Process for opting into this Benefit

Declaration

At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Children Education Allowance
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.
 ACCOLITE CONFIDENTIAL

VEHICLE REIMBURSEMENT

Applicability:

Applicable to those employees who are having four-wheeler and Two-Wheeler.

Guidelines and Coverage

Following are the conditions for claiming this exemption;

1. Employee need to submit a copy of the RC book to HR / Finance.

2. Vehicle must be in the name of the employee.
3. Following are the expenses can be claimed towards Vehicle Reimbursement
a. Fuel expenses
b. Maintenance or Repair of Car
c. Insurance
d. Receipt towards Driver salary paid
4. All expenses should be incurred in the current Financial year
5. All documents, except Insurance has to be submitted in Original.
6. The Eligibility of Vehicle Reimbursement for Four-Wheeler would be as follows;
a. Four wheeler having cubic capacity of less than 1600 cc, then the limit would be Rs.1,800/- per
month
b. Four wheeler having cubic capacity of more than 1600 cc, then the limit would be Rs.2,400/-
per month
c. Driver salary would be allowed to the extent of Rs.900/-
7. Eligibility of Vehicle Reimbursement for those having Two-Wheeler is Rs.900/- per month.
8. Please note that employees opted for Vehicle Reimbursement (irrespective of Four-wheeler or two-
wheeler) would not be eligible for standard Conveyance Allowance exemption of Rs.800/- per month

Process for opting into this Benefit

Declaration

At the beginning of the fiscal year <or on date of joining for new hires> you will be required to submit a
declaration to payroll OPTING for this benefit through the HRMS tool.
Log in to HRMS tool and go to MY SELF tab My Compensation FBP
Select Component under the drop down Vehicle Reimbursement
The due date for submission of declaration is on or before 15th day of the month
Once the declaration is submitted, employees will not be allowed to modify
The declaration changes will be considered only effective from the month in which the declaration is being
modified and under no circumstance, the same would be considered with retrospective effect.