FLEXI BASKET PLAN (F.B.

P)

● What is FBP ?

● Flexible Benefits Plan (FBP) is an option to modify components of Fixed CTC.

● FBP has been carved out of your Special Allowance component of your salary structure and intends to
provide you tax benefits apart from your regular Investments that you would have made as per the IT act.

● What are the different types of components available in FBP

1. Professional Development: (Maximum 1,50,000p.a)

● For encouraging academic research and training pursuits, employees shall get tax benefit up to the cost
of books, periodicals, professional/technical seminar, workshop, certifications & courses.
● Bills or invoices of spending is mandatory for availing this component.
● In case you have availed the Professional Development as benefit in the current financial year, you cannot
claim the same amount for tax exemption under FBP on the same invoice.

2. Telecommunication Perquisite:(Maximum 36,000 pa.)

● Includes both telephone and mobile phone/ Internet bill reimbursements.

● Employees need to submit a Telephone bill or broadband bill along with the invoice.

3. Leave Travel Allowance (LTA) :(Maximum 3,00,000 p.a)

● Tax exemption can be claimed for 2 domestic journeys in a block of 4 years for self, spouse, 2 children and
dependent parents . Current block 2022-2026.
● If opted for, the exemption requires employees to submit travel proofs (Travel tickets).
● Carry forward balance is applicable.

4. Conveyance Allowance :(Maximum 24,000pa)

● This allowance is granted to meet expenditure for commuting between place of residence and place of work;
the exemption amount is INR -
● Fuel Bills or cab bills are required

For Internal Circulation only

 Summary of FBP Options
Flexi Benefit Options Maximum Capping (Per Documents Required
Annum)
Professional Development Up to INR 150,000 p/a Below mentioned invoices are accepted -

- Seminar
- Professional development courses
- Advance certification,
- Knowledge workshops,
- Professional development books

**Invoice should be in employee name

Up to 36,000 p/a Below mentioned invoices are accepted -

Telecommunication Perquisite - Telephone bills

- Broadband bill
- Mobile prepaid/Postpaid

**Connection/Bills should be in employee name

Conveyance Allowance Up to 24,000 p/a Below mentioned invoices are accepted -

- Fuel bills
- Cab bills**

**Cab Bills should be in employee name.

Base Location for bills - Bangalore , Mumbai , Kolkata.

Leave Travel Allowance Up to 3,00,000p/a Below mentioned invoices are accepted -

- Travel bills - Self, Spouse, kids, parents(if applicable).

- Air - Economy
- Train - First AC
- Bus - AC Sleeper

For Internal Circulation only

 How to declare the FBP

➔ To declare FBP, perform the following actions:

● Log in to Greythr portal and navigate to Salary > FBP Declaration

This is for reference only

● Click on the FBP Declaration page.

● You can view the Max Allotment amount in rupees. Max Allotment is the maximum amount for which employees can
declare FBP.

● Select the checkbox against the components you want to declare in FBP.

● Specify the amount under the Preferences column. Every time you add an amount for a component, you can view
the updated Total declared amount in the footer. You can also view Special Allowance Balance in the footer.

For Internal Circulation only

 This is for reference only
● Click Submit to declare your FBP.
● Please note that FBP components should be declared once and redeclaration of the components will be allowed only
if there is a salary change during the financial year.
● Amounts declared from FBP will be deducted from the CTC and tax will be deducted on the leftover amount.
● Bills are required to be submitted at the end of each financial year, failure to do so will result in retrospective Tax
deduction in next month's salary payout.

➔ How to submit the invoices for FBP declared -

● Please click here to go through the detailed video description regarding the proof of spending towards the declared
FBP components.

➔ How frequently I can change the FBP selection -

● FBP can be declared only once in a financial year.

● Exceptions to be considered only in case of salary change/correction

➔ I opted for New tax regime, can I select the FBP

● No, FBP selection is only allowed in case you have opted for “Old Tax Regime”.

➔ What if I do not opt for FBP ?

● The amount which is not claimed by an employee is denoted as Unclaimed.

● This shall be paid along with salary and Income Tax would be applied as per applicable slab.
● A detailed comparison is provided in Annexure - I

➔ What if I do not submit the bills?

● Bills/ invoices are mandatory for any claiming FBP.

● Tax will be deducted based on the amount declared and the employee needs to submit the relevant proof at the end
of each financial year (Dec month onwards).
● Non submission of documents will result in deduction of tax amount from the subsequent month salary payout.

For Internal Circulation only

➔ What if I leave during the financial year ?

● In case, the employee leaves during the financial year, invoices until the last working month is required else there will be
a tax deduction on the full amount.

Annexure - I

FBP vs Non FBP Comparison

Assuming an employee has a fixed CTC of INR 12 LPA and had not made any investments

Part (A) Per Month Without FBP Per Month With FBP
Basic 50,000 50,000
House Rent allowance 20,000 20,000
Flexible Benefit Plan(taxable) 25,796 13,796
Flexible Benefit Plan (Exempted) – 12,000**
Employer's contribution to PF 1,800 1800
Gratuity 2,405 2,405
Total earnings (A) 95,796 83,796
Less: Deduction per month:
Employees contribution to PF 1,800 1800

Professional tax 200 200

Total Deduction (B) 2000 2000

Tax Deducted assuming 20% (no
investment) 18,759 16,359

75,796 77,437**
Net take home

** Assuming an employee -
● Declares – Full Conveyance Allowance - INR 24,000 p.a - 2k p.m
● Declares – Full Telecommunication Perquisite - INR 36,000 p.a - 3k p.m
● Declares - Partial Professional Development – INR 84,000 p.a (approx)

For Internal Circulation only

 Annexure - II

Undertaking from employee

I hereby declare that the invoices shared by me is not submitted by my Spouse/Immediate family members for
claiming any Tax benefits in their organization.

Employe Name-
Emp. ID-
Sign-
Date-

For Internal Circulation only