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Understanding Flexible Benefit Plans

This document contains frequently asked questions about a company's Flexible Benefit Plan. The FBP allows employees to allocate parts of their salary to various permitted components like telecommunications, books, meals, travel allowance, and car lease. Employees can opt for these benefits at the start of each financial year. Bills for reimbursement under the flexi plan must be submitted monthly between the 1st to 15th. Any unclaimed flexi amounts will be paid as a taxable allowance at the end of the year. The LTA can be claimed every 4 years for 2 journeys if investment proofs are submitted. Foreign travel is not eligible for tax exemption under the LTA.

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Divyansh Chand Bansal
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271 views4 pages

Understanding Flexible Benefit Plans

This document contains frequently asked questions about a company's Flexible Benefit Plan. The FBP allows employees to allocate parts of their salary to various permitted components like telecommunications, books, meals, travel allowance, and car lease. Employees can opt for these benefits at the start of each financial year. Bills for reimbursement under the flexi plan must be submitted monthly between the 1st to 15th. Any unclaimed flexi amounts will be paid as a taxable allowance at the end of the year. The LTA can be claimed every 4 years for 2 journeys if investment proofs are submitted. Foreign travel is not eligible for tax exemption under the LTA.

Uploaded by

Divyansh Chand Bansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Introduction and Basic Questions
  • Flexible Benefit Plan Planning
  • Meal Card and Claims Submission
  • Tax Exemption and Additional Queries

Frequently Asked

Questions on
Flexible Benefit
Plan

Q1. What is Flexi Benefits Plan (FBP)?


FBP is a basket of allowances provided by an employer to employee in his / her Cost to Company
(CTC) to allocate his salary to various permissible components and plan his / her cash flow. This also
provides flexibility to the employee to plan his / her tax for the year, based on individual needs.

Q2. What is the maximum entitlement under flexi benefit plan?


Benefit Category Sub Benefits Eligibility
Tele Communication Upto 30000 p/a
Books & Periodicals Upto 12000 p/a
Learning and Development Upto 150000 p/a
Flexi Benefit Plan
Meal Card Upto 26400 p/a
Leave Travel Allowance Upto 100000 p/a
NPS 10% of basic
Car lease 20% of Annual Fixed CTC
Car Lease Fuel & Maintenance 216000 (if you opted car lease policy)
Drivers Salary 240000 (if you opted car lease policy)

Q3. How often can one plan FBP?


Beginning of the financial year, dates are displayed at flexi guidelines Click Here for Flexi Guidelines
Q4. What are fixed pay components?
Fixed pay components are those components of CTC which fixed by employer such as Basic, HRA,
Provident Fund, etc. and employees are not allowed to change their limits due to policy or statutory
reasons.
Q5. How often can one plan FBP?
This is based on company’s policy and the dates are displayed in flexi guidelines.
Q6. How do I opt flexi?
Login on to ADP [Link] -> Flexi-> opt Benefit-> Submit

Download the flexi benefit (opt) report


Q.7 What is the procedure to opt meal card?
Meal card is part of flexi component, you can opt meal card under flexi category.

Q.8 Do we need submit any bills for meal allowance?


No. Meal allowance will be loaded to Sodexo card by month end and you the same for food
and grocery expenses.

Q.9 How do I submit bills for flexi reimbursement?

Q.10 When do I submit bills for flexi reimbursement?


Bills need to be uploaded in ADP portal [Link] Claim submission
upload bills between 1st to 15th (starts from May’20 onwards) every month.

Q.11 Is flexible salary an additional benefit to employee?


Flexi is tax saving option and is part of your CTC.

Q.12 What if bills not submitted against flexi reimbursement


Unclaimed flexi amount will be paid along with financial year end payroll (March Payroll) as a
taxable allowance.
Q.13 Is flexi reimbursement credited to bank account?
Yes. Flexi reimbursement will be credited to your salary account.
Q.14 When do I need to submit bills for LTA claim?
Bills to be submitted during submission investment proof.
Q.15 Can I claim LTA every year?
Exemption will be available to an individual in respect of 2 journeys performed in a Block of 4
calendar years (2018-2021)
Q.16 Foreign Travels are eligible for tax exemption?
No.
Q.17 Is declaration mandatory to claim LTA?
Yes, you will have to opt LTA during beginning of financial year.

Q.18 Can I opt fuel and maintenance/ Driver salary?


Applicable to employees who have availed of the Company Car facility.
Q.19 How to navigate in ADP User manual?
Click Here for ADP User Manual

*In case of any query related to Payroll, Investment declaration, flexi declaration & Flexi-claim
submission, please raise your query at ADP portal [Link] by using your ADP
login credentials
And if you will not receive a response /non satisfactory response from ADP, please write to us
payroll@[Link] mentioning the ADP’s ticket id/service id.

Frequently Asked Questions on Flexible Benefit Plan Q1. What is Flexi Benefits Plan (FBP
Q4. What are fixed pay components? Fixed pay components are those components of CTC which fixed by employer such as Basic, H
Q.7 What is the procedure to opt meal card? Meal card is part of flexi component, you can opt meal card under flexi category
Q.16 Foreign Travels are eligible for tax exemption? No. Q.17 Is declaration mandatory to claim LTA? Yes, you will have

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