OAAR Policy & Guideline:

Eligibility Cycle:

1. The OAAR Plan will work on a financial year basis i.e., April to March.
2. For joiners during the year, the OAAR amount will be prorated from the date of joining to March
31st. Employees can declare their choice of elements based on job needs as well as personal
requirements and the limits under OAAR- on HGS ESS portal at the time of joining or when the
portal is made open as the case may be.
3. Declarations once made, can only be changed in the months of April/ May and October.
4. Other Allowances and Reimbursements policy Version 8.0 Page 5 of 10
5. When the Payroll portal re-opens for declaration in October, any changes will be effective 1st
October only. There can be no back-dated changes for declaration.

OAAR1
Particulars Declaration Submission Payout Tax Savings

Remote Working Allowence

Can be
Books and Journals Allowance Declaration Upto the bills
submitted Paid out monthly
window in April/ submitted as
throughout the via payroll
May and October applicable.
Professional Pursuit Allowance year

Conveyance Allowance

OAAR2
Particulars Declaration Submission Payout Tax Savings

Paid in same month’s

Leave Travel Declaration window in Can be submitted Upto the bills
payroll post bills are
Assistance April/ May and October throughout the year submitted
submitted

Paid in same month’s

Vehicle & Driver
payroll post bills are
Reimbursement
submitted

Meal cards No Bills required

Upto the
Employee to open NPS CG
Paid as monthly monthly
National Pension corporate account and
No Bills required contribution to NPS contribution
Scheme the window is open
account to NPS
throughout the year.
account
Tax Applicability:

S. N OAAR-1 Components Old Tax Regime New Tax Regime

1 Remote Working Allowance Tax Free Reimbursement* Tax Free Reimbursement*

2 Books and Journals Allowance Tax Free Reimbursement* Taxable

3 Professional Pursuit Allowance Tax Free Reimbursement* Taxable

Tax Free Reimbursement only for Tax Free Reimbursement only for
4 Conveyance Allowance
differently abled* differently abled*
S. N OAAR-2 Components Old Tax Regime New Tax Regime
5 Leave Travel Assistance Tax Free Reimbursement* Taxable
6 Meal cards Exempt allowance Taxable
7 Vehicle & Driver Reimbursement Tax Free Reimbursement* Tax Free Reimbursement*
8 National Pension Scheme Upto 10% of basic Upto 10% of basic

Details of individual elements under OAAR

1. Remote Working Allowance (OAAR 1)

Several of our employees are working from home regularly. Employees will be given this allowance in lieu
of costs incurred while working remotely, including but not limited to cost towards internet, electricity,
installation and maintenance of office infrastructure.

Below are two components:

1. Employees can claim landline, mobile bills and internet bills under this allowance which will provide
tax benefits.
2. Remote Infrastructure Assistance Allowance: a. If employee is claiming internet or mobile
reimbursement from Capgemini, then only the residual amount remaining post reimbursement; upto
36,000 annually can be submitted for tax benefit.
This allowance is also paid to defray the expenses incurred by employees for work related white goods,
electricity bill, water bill, WIFI router, desk, modems, external monitor, mouse, extendable keypad, UPS
for routers and desktops, table and chair etc. However, the employees will not get tax benefits in respect
of these expenses and these elements are completely taxable.

Please note that any reimbursement directly claimed by an employee from the company cannot be
considered under this allowance.

Document Requirements:

1. The claim can include 1 landline, 1 mobile phone, 1 internet connection in the employee’s name,
supported by appropriate bills.
2. Payout would be limited to maximum of 80% of the bill amount or the limit for the grade specified
under this policy.
3. Landline can be in the name of self, spouse, parents, or landlord, provided it is installed at the address
of the employee as per Capgemini’s records.
4. If cell phone is provided by Capgemini, then employee can claim reimbursement for only 1 landline
and 1 internet connection up to Rs. 24,000 per annum as upper limit.

For more details, refer FAQ on OAAR

2. Books and Journals Allowance

Below are two types:

1. Professional magazines, books, journals and periodicals (digital or print) purchased for official
purposes, in relation to business activity and/or job profile of the employee will be considered under
tax saving allowance.
2. Books of personal interest, pursuits and hobbies including newspapers and general magazines, child’s
textbooks etc. will not be considered under tax saving allowance.

Document Requirements:

1. The employee must submit genuine and authentic original scanned invoice copy along with the proof
of payment.
2. The invoice must be in the employee’s name and shall specify details like name of the book /
periodical etc, and the author (wherever applicable).
3. The employee must take an approval from N+1 (Grade C2 and above only) proving that the books and
journals purchased are in relation to the business activity/job profile of the employee. Such e-mail
approval must be attached along with the invoice copies/payment proofs while claiming the tax
benefit.

3. Professional Pursuit Allowance

During employment, employees are expected to upskill themselves on a regular basis, to learn new tools
or skills that are necessary to perform their job role at Capgemini and to operate in a competitive market.

This component allows employee to claim reimbursement and defray special expenses towards the fee
paid to any educational institution for furthering their professional and/ or technical knowledge in respect
of the work they are doing for Capgemini, provided the following conditions are satisfied:

1. Course being pursued leads to a formal certification through a certificate/ degree/ diploma, after
conclusion.
2. The institute/ university is registered and recognized as an educational body by UGC, AICTE or a
State/ Union government.
3. The pursued course (degree/ diploma/ certification) leads to enhancement of skills, education, and
knowledge of the employee, which he/she can substantiate as a tool for career growth/ knowledge
enhancement in respect of the work/job role they are performing for the Capgemini.
4. Expenses incurred on literature from the university/ body from where the employee is pursuing the
course will be covered under this benefit; however, any membership fees paid by an employee to the
institute will not be covered.
5. Overseas online or offline certification courses are allowed, provided the course would enhance
employee’s professional / technical skills and would help them in improving performance of their
official duties.

Maximum allowance provided as per grade given in Table 1.

Document Requirements:
1. The employee must submit the genuine and authentic original scanned invoice copy along with the
proof of payment.
2. Employees should obtain mail approvals from their N+1(Grade C2 and above) before claiming the
allowance and such approval is to be attached along with the invoice/payment proofs for claiming the
tax benefit.
3. The invoice should be under the name of the employee.

For more details, refer FAQ on Professional Pursuit

4. Conveyance Allowance

This allowance is payable to employees to defray travel expense to and from employee’s residence to
workplace.

Important points to note:

1. Only employees who are orthopedically challenged or differently abled with mobility issues of lower
extremities only (as defined under the Indian tax law) can avail tax exemption on conveyance
allowance.
2. Employees who opt for the Capgemini’s bus facility, the recovery will happen from the Conveyance
Allowance.
3. Employees can choose only one option i.e., either the Conveyance Allowance or Vehicle and Driver
Reimbursement for company leased vehicle or self-owned car.

Maximum allowance provided as per grade given in Table 1. Other Allowances and Reimbursements policy
Version 8.0 Page 8 of 10

 Medical Authority means a Neurologist OR Civil Surgeon/Chief Medical Officer of a Government

hospital.
 Certificate to be issued by Medical Authority is available as FORM NO. 10-IA on Income Tax authority
website.

Document Requirements:
1. Employees need to furnish the disability certificate in the portal for availing the tax exemption. By
virtue of Income-tax (Eighteenth Amendment) Rules, 2005, as per Notification No. 177/2005 [F.NO.
192/25/200-TPL], Dated 29-6-2005, there is a FORM NO. 10-IA which is a Certificate of the medical
authority for certifying ‘person with disability’, ‘severe disability’, ‘autism’, ‘cerebral palsy’ and
‘multiple disability’ for purposes of section 80DD and section 80U. Please note:
2. For more details, refer FAQ on Conveyance Allowance.

5. Leave Travel Assistance

LTA is a special benefit offered to employees towards the cost they may incur while travelling on leave.
Employees can claim Leave Travel Assistance or LTA reimbursement towards domestic travel for self and
family members as per the provisions of section 10(5) of the income tax act, 1961.

Important points to note:

1. The tax exemption for LTA can be claimed twice in a block of four years. The current block is
from Jan 2018 to Dec 2021.i.e. one can claim for 2 journeys in a block of 4 years.
2. 5 days continuous Privilege Leave needs to be approved in LMS portal to be entitled to LTA
reimbursement.

Document Requirements:
1. Scanned copies of the original travel tickets need to be submitted for claiming LTA. Submission
of Boarding pass along with tickets is mandatory for air travel
2. Proof of leave. Ex- LMS leave approved screenshot.

For more details, refer FAQ on LTA

6. Meal Card

All permanent employees will be entitled to meal card for a fixed amount of INR 2,200 per month which
can be used towards purchase of food & non-alcoholic beverages at the outlets affiliated with in the
Capgemini’s premises.

Important points to note:

1. Sodexo Meal Pass Cards will be loaded for employees every month if they have opted for it.
2. The Card will be distributed through the Sodexo Distribution POC’s.
3. Employees can reach out to capgeminisupport.in@sodexo.com for further queries.

For more details, refer FAQ on Meal Card.

7. Vehicle & Driver Allowance

For Self-Owned Vehicle

This component will allow the employee to claim reimbursement of fuel, insurance cost, maintenance
and driver salary expenses incurred on personal vehicle.

Important points to note:

Other Allowances and Reimbursements policy Version 8.0 Page 9 of 10

1. Fuel bills and driver salary paid for future costs. Maintenance & insurance can be claimed for
year.
2. Maximum tax benefit for reimbursement will be calculated as per the below defined limits:

Cubic Capacity of Engine Upto 1600 CC More than 1600 CC

Fuel Reimbursement (Per

Month) INR 1,800 INR 2,400

Driver Salary Reimbursement

(Per Month) INR 900 INR 900

3. This benefit is applicable to employees who use their self-owned vehicle for both personal and
official purpose.
4. Such reimbursement is applicable for use of four-wheeler only. Reimbursement claim of two-
wheeler will not qualify for a vehicle reimbursement.
5. Employee who are availing the bus/cab facility or opted for conveyance allowance cannot opt
for vehicle reimbursement.

Document Requirements:

To claim this amount employee would have to submit a scan copy of their vehicle registration
certificate once and thereafter the scanned copies of the original receipts of expenses for claiming
the car allowance and driver’s allowance.
For more details, refer FAQ on OAAR.
8. National Pension Scheme

NPS is to assist employees to contribute towards a Pension scheme launched by Government of India and
avail associated tax benefits. It is a system in which the contributions are invested under a mix of assets
and the retirement corpus is determined on the returns of those assets.

Important points to note:

1. Permanent Employees in grade C and above can opt to contribute such percentage of their basic
salary towards NPS as provided under law.
2. NPS will be adjusted from your OAAR 2 (if part of Pay Letter)
3. Employer’s Contribution Investment up to 10% of Basic salary is exempted from income tax,
subject to the cap of INR 7,50,000 in terms of absolute value.

Please read the NPS guidebook for further details.