Books and periodicals allowance for employees

What is books and periodicals allowance?

A Book and Periodical Allowance in India is a flexible employee benefit provided to government employees to support their access to books, newspapers, and periodicals.

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It is designed to encourage continuous learning and knowledge acquisition among employees, both professionally and personally. Employers add this benefit to employees' salaries.

What is covered under books and periodicals allowance?

Here are some things covered under books and periodicals allowance:

• Costs incurred in buying books, encompassing technical manuals, textbooks, and reference materials. 
• Payment of subscription charges for journals, magazines, and newspapers. 
• Covering the cost of membership fees associated with pertinent publications. 
• Acquiring subscriptions for digital e-books.

Books and periodicals reimbursement - how does it work?

You can claim books and periodicals allowance via reimbursement. You have to claim within one year of purchase with bills and transactions made. 

Employees should submit the bills and transaction records to the employer for them to process reimbursement.

Books and periodicals allowance exemption section

Books and periodicals section 10(14) of the IT Act 1961 of the Income Tax Act. It is a fully tax-free allowance. 

Non-taxable on actuals means that you will not be required to pay certain taxes, such as sales tax or value-added tax, on the purchase of these items. Instead, the tax exemption is applied to the exact amount you spent on buying books and periodicals. 

What is considered as a proof for books and periodicals allowance?

As a proof to claim reimbursements, your employer may consider the following:

Receipts: Keep original receipts for book and periodical purchases. These receipts should clearly indicate the name of the publication, the date of purchase, and the amount paid.

Invoices: Invoices from booksellers, publishers, or online retailers can serve as proof. These should include details of the items purchased and the amount paid.

Subscription receipts: If you are paying for subscriptions to journals, magazines, or online publications, the subscription receipts or invoices should be retained.

Bank or credit card statements: Bank or credit card statements that show the transactions related to the purchase of books and periodicals can be used as proof.

Online records: If you make digital book or periodical purchases, digital records or confirmations from online retailers can serve as proof.

Detailed expense reports: Some organizations may require employees to submit detailed expense reports that include itemized lists of books and periodicals purchased, along with corresponding receipts or invoices.