Ad-hoc allowance with tax exemption and mandatory proof

You can configure an ad hoc allowance to allow tax exemption and require employees to submit proof or supporting documents to claim the exemption.

Steps to configure the Adhoc Allowance

1. Go to Payroll → Settings → Components → Adhoc Component.
2. Select the required ad hoc component.

     3. Select the applicable Section and Section Limit.

    4.If the selected section is also applicable under the New Tax Regime, enable the relevant section.                    Otherwise, leave this field unchanged.

   5. Enable requires submission of document proof (or bills) to claim for tax exemption.

   6.Click Save to save the configuration.

Once configured, the Adhoc Allowance can be considered for tax exemption, and employees must submit the required proof or documents to claim the exemption.