Mumbai, Feb 11: Zaggle, a leading spend management and employee benefits platform, welcomes the progressive reforms under the New Income Tax framework, designed to enhance employee savings while enabling organisations to offer flexible and value-driven compensation structures.
A key highlight of the reforms is the increase in the meal benefit exemption from ₹50 to ₹200 per meal, significantly boosting monthly tax-efficient meal allowances for employees. This exemption now applies under both old and new tax regimes, promoting wider adoption among organisations transitioning to the new framework.
The annual tax-exempt gift limit has also risen from ₹5,000 to ₹15,000, giving employers more flexibility to reward and engage employees in a tax-efficient manner. Additionally, the reforms strengthen structured wallet-based benefits for employees with vehicles. Monthly fuel wallet limits have been increased, and exemption thresholds for driver salaries have been raised, enabling better tax efficiency for eligible employees and opening opportunities for organisations to implement competitive mobility benefit programs.
While some tax advantages linked to company car leases have been moderated, the broader trend clearly supports digital, wallet-based benefit models that are transparent, compliant, and easy to administer at scale.
Commenting on the development, Dr. Raj P. Narayanam, Founder & Executive Chairman, Zaggle, said:
“The latest tax reforms mark a significant step toward increasing employees’ purchasing power through smarter, flexible benefit frameworks. With expanded meal, gift, fuel, and mobility allowances, organisations can redesign compensation strategies that are more tax-efficient and transparent. Zaggle’s technology platform allows enterprises to seamlessly operationalize these reforms while delivering tangible financial value to employees.”
With these policy updates, Zaggle continues to empower enterprises with technology-led, compliant solutions that simplify benefits administration, improve governance, and help employees unlock higher savings in an increasingly digital economy.