4. Transportation Facilities: If an employer is provided with a car for both official and personal use, he is liable to be taxed with concessions. If the cubic capacity of the car does not exceed 1.6 litre, then the employer will be charged with 1,800 every month.

If it exceeds the given limit then he will be charged with 2,400. Along with it, if a chauffeur is also provided to the employer then he will be taxed 900 more.

However, if the car with a chauffeur is owned by the employee himself then he will incur less expenditure as compared to that of the car and a chauffeur provided to him officially. The government need to rationalize and consider the tax imposed on this regard.

5. House Rent Allowances: House Rent Allowances is generally received by the salaried class. Since, 1998, a deduction of 2000 is allowed for the rent paid by an individual who is exempted from HRA allowances. This limit has to be revised again to meet the increased rates of rents in the present scenario.

Increase in the HRA allowances will help the employees to cope up with the increase costs and allow then to save money. The tax imposed on the HRA allowances are also needed to be considered by the government to ease the lives of the individuals.

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