Frequently Asked Questions

on OAAR

FAQ on OAAR Policy

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Contents
Distribution List..................................................................................................... 2
Version History ..................................................................................................... 2
OAAR ................................................................................................................... 4
Changes in OAAR .................................................................................................. 4
Overall Process ..................................................................................................... 5
Allowance under OAAR ........................................................................................... 6
I. Remote Working Allowance ........................................................................... 6
II. Books and Journals ...................................................................................... 7
III. Professional Pursuit ................................................................................... 7
IV. Conveyance Allowance............................................................................... 8
V. Leave Travel Allowance(LTA) ......................................................................... 9
VI. Meal Card (Sodexo cards) .......................................................................... 9
VII. Vehicle & Driver Reimbursement ............................................................... 10
VIII. National Pension Scheme ......................................................................... 11
Claim Process ..................................................................................................... 11
Bills Submission Rules ......................................................................................... 12
Point of Contact .................................................................................................. 13

Distribution List
Issued to all employees of Capgemini

Version History

Version Date Description

1.0 April 1, 2013 Creation of document
Additional question on below changes to OAAR Policy:
 Restructuring of OAAR into OAAR 1 and OAAR 2
 Introduction of new allowances to assist employees
defray special expenses related to their
2.0 April 1, 2021 job/employment, such as Books and Journals,
Remote working and Professional Pursuit allowance
 Increase in allowance limits- LTA- C1 grade, Vehicle
and Driver Reimbursement for B1 grade and Meal
Cards for all grades

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  Deletion of Excelity links.
 Addition of Payroll portal and links.
3.0 June 4, 2021
 Added additional questions under Books and
Journals allowance.

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Frequently Asked Questions
OAAR
1. What is Other Allowance and Reimbursement (OAAR)?
OAAR is a basket of tax and non-taxable benefits to help employee optimize and plan
income tax benefits as applicable under income tax act and rules.

Changes in OAAR
2. What are changes as per the new OAAR structure?
There are 3 changes to the OAAR structure:
1. The OAAR basket is divided into 2 OAAR baskets: Employees could choose
to include any of the elements either in the non-taxable or taxable category,
subject to OAAR amount mentioned in the Pay Letter.
a. OAAR 1: For OAAR 1 is mandatory for employees to choose to avail tax
benefits. If not, the amount will be paid out as taxable benefit.
i. Remote Working Allowance
ii. Books and Journals Allowance
iii. Professional Pursuit Allowance
iv. Conveyance Allowance
b. OAAR 2: All the elements listed are optional under this basket.
i. Leave Travel Assistance Allowance
ii. Meal cards
iii. Vehicle & Driver Reimbursement
iv. National Pension Scheme
2. New Allowances introduced:
a. Remote Working Allowance
b. Books and Journals Allowance
c. Professional Pursuit Allowance
d. Conveyance Allowance
3. Previous Allowances are enhanced:
a. Leave Travel Assistance - Enhanced for Grade C1 from INR 60,000 to
INR 90,000 per year.
b. Meal cards - Enhanced for all Grades from INR 24,000 to INR 26,400 per
year.
c. Vehicle & Driver Reimbursement - Enhanced from INR 21,600 to INR
39,600 per year for Grade B1.

3. When can I declare my allowances as per the new Structure?

In the month of April/ May or October.

4. What happens if I don’t declare my allowances?

If you do not make any tax saving declarations, then you will not get the tax saving
benefits that would have been applicable. Any amount that is not declared will be paid
out to you along with your monthly salary after deduction of applicable taxes.

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5. What is the tax applicability as per the new Tax regime?

S.
OAAR-1 Components Old Tax Regime New Tax Regime
N
1 Remote Working Allowance Tax Free Reimbursement* Tax Free Reimbursement*
2 Books and Journals Tax Free Reimbursement* Taxable
3 Professional Pursuit Tax Free Reimbursement* Taxable
Tax Free Reimbursement Tax Free Reimbursement
4 Conveyance Allowance only for physically only for physically
Challenged Challenged

S.
OAAR-2 Components Old Tax Regime New Tax Regime
N
5 Leave Travel Assistance Tax Free Reimbursement* Taxable
6 Meal cards Exempt allowance Taxable
Vehicle & Driver
7 Tax Free Reimbursement* Tax Free Reimbursement*
Reimbursement
8 National Pension Scheme Upto 10% of basic Upto 10% of basic
*Subject to conditions stipulated under individual allowance definitions

Overall Process
Declaration Submission Payout Tax Savings
OAAR1
Remote Working
Allowance
Declaration
Books and Journals Can be submitted Upto the bills
window in Paid out monthly via
Allowance throughout the submitted as
April/ May and payroll
Professional Pursuit year applicable.
October
Allowance
Conveyance Allowance
OAAR2

Leave Travel Assistance Can be submitted Paid in same month’s Upto the bills
Declaration
throughout the payroll post bills are submitted as
window in
year submitted applicable.
Vehicle & Driver April/ May and
Reimbursement October
Paid out monthly to Upto the monthly
Meal cards
the meal card card loading amount
Employee to
open NPS CG
corporate
No Bills required Paid as monthly Upto the monthly
National Pension account and
contribution to NPS contribution to NPS
Scheme the window is
account account
open
throughout the
year.

6. How and when can I declare OAAR amount?

Existing Employee: Declaration towards selection of components needs to be
updated on Payroll (HGS). This portal will be open for declaration for existing
employees twice a year in the months of April/ May & October.

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 New Joiner: Declaration towards selection of components needs to be updated on
Payroll portal(https://ess.hgsbs.com/login?company=CG) before 15th of the month by
a new joiner.

 Steps to declare OAAR plan

o OAAR page Path: India Talent > Payroll (HGS) > OAAR allocation. Select
component you want to opt. Eg: Meal Coupon
o Enter INR 2200.
o Click Confirm / Submit button to confirm your plan.

 Steps to enrol to NPS:

o Please check the link for detailed process.

Allowance under OAAR

I. Remote Working Allowance

7. Who can claim this allowance?
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.

8. What can be claimed under this Allowance?

Non-Taxable: Employees can claim landline, mobile bills and internet bills under this
allowance which will provide tax benefits.

Taxable: Employees are also paid towards their electricity bill, water bill, WIFI router,
desk, modems, external monitor, mouse, extendable keypad, routers, UPS for routers,
UPS for desktops, head phones, external mic for calls, purchase of work stations -
Table or chair. These elements are completely taxable and not tax free.

Employees who claim internet reimbursement cannot claim tax benefit on the same
bill.

9. Will the whole bill be reimbursed?

Payout would be limited to maximum of 80% of the bill amount or the limit for the
grade specified under this policy.

10. What are the limits for claiming Mobile, Landline and Internet Allowance?
 For mobile, landline and internet usage the annual limits are 36,000 i.e.
12,000 each.
 Any claim reimbursed via the organization reduces the eligibility
proportionally.
Eg- If an employee claims mobile bill then total tax benefits limit will be
revised to 24,000 and claims are done for both mobile and internet then the
limit will be revised to 12,000.

11. Should the broadband, mobile connection and landline be in the employee’s
name?

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 Mobile connection must be under the name of employee. Broadband and landline can
be in the name of employee, spouse, parents, or landlord, provided it is installed at
the address of the employee as per Capgemini’s records.

II. Books and Journals

12. What and how much will the allowance cover?
Reading materials relevant to the professional nature of work in Capgemini. The
allowance covers both online and offline subscriptions of professional magazines, books
(audio books included), podcasts journals and periodicals. Maximum allowance
provided as per grade given in Table 1 in the policy.

13. What will not be covered?

Books of personal interest, pursuits and hobbies including newspapers and general
magazines, children textbooks etc. will not be considered for tax benefits.

14. Are audio books, YouTube (Patreon payments) and podcasts covered?
Yes, audio books, YouTube (Patreon payments) and podcasts relevant to professional
sphere is allowed. The bills have to against the specific audio book / podcast.

15. Will membership fee for clubs (like ICWA and CA membership, etc.) through
which we receive books and journals be covered?
No, such membership fee won’t be covered unless the receipts clearly mentions the
payment towards specific books and journals.

16. How do I claim this allowance?

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

III. Professional Pursuit

17. What does the allowance encompass?
This component allows employee to claim reimbursement of fee paid to any educational
institution for furthering their professional and/ or technical knowledge.
Professional development is any training, education, courses undertaken that is
currently related to the nature of job pursued by the employee or assists in upskilling
the employee for the present role. Course being pursued leads to a formal certification
through a certificate/ degree/ diploma, after conclusion.

18. Which courses are allowed under this allowance?

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.

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 3. The pursued course (degree/ diploma/ certification) leads to enhancement of skills,
education and knowledge of the employee, which can substantiate as a tool for
career growth/ knowledge enhancement.

19. Will the allowance cover study material costs?

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.

20. Can an employee claim reimbursement of overseas online or offline

certification course under Professional Development Fees?
Yes, employees can claim reimbursement of overseas online certification course under
Professional Development Fees, provided the course would enhance their professional
/ technical skills and would help them in performance of their official duties.

21. Can an employee claim reimbursement for 2-3 days’ certification course
under Professional Development Fees?
Yes, the employee can claim reimbursement for 2-3 days’ certification course under
Professional Development Fees, provided the course would enhance their professional
/ technical skills and would help them in performance of their official duties.

22. Can an employee claim reimbursement for paid professional seminars

conducted under Professional Development Fees?
Yes, the employee can claim reimbursement for paid professional seminars if the
course would enhance their professional / technical skills and would help them in
performance of their official duties.

23. Which courses are NOT allowed under this allowance?

Any course or certification that does not enable professional development of the
employee.

24. How do I avail the allowance and how much can I avail?
1. Employees must obtain mail approval from their Manager (C2 Grade) and above
before claiming the allowance. Such e-mail has to be attached along with the
invoice copies/payment proofs while claiming the tax benefit.
2. The employee must submit the genuine and authentic original scanned invoice copy
along with the proof of payment.
3. The invoice should be under the name of the employee.

Maximum allowance of as per grade given in Table 1 in the policy.

IV. Conveyance Allowance

25. What does this allowance cover?
This allowance is applicable as travel expense to and from employee’s residence and
workplace.

26. Does everyone claiming this allowance get tax benefit?

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.

27. How do I avail tax benefits and what is the maximum allowance possible?

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 Employees need to submit differently abled certificate on the portal for availing this
allowance and submit the bill as per Bill submission process defined below. Maximum
allowance will be as per grade given in Table 1 in the policy.

28. Can employees availing company paid bus facility / company car / car and
driver allowance avail this allowance?
Employee who are availing either the bus facility or opting for the company car lease
scheme or claiming car and driver allowance cannot get tax benefits for Conveyance
Allowance.

V. Leave Travel Allowance(LTA)

29. How much LTA can I claim?
As per the provisions of the IT Act, employees can claim LTA reimbursement as per
their eligibility defined in their salary structure subject to maximum limit mentioned in
the Table 1 in the policy.

30. How many times can I claim LTA?

LTA can be claimed twice in a block of four years. The current block is from Jan 2018
to Dec 2021.

31. What proofs are required to claim LTA?

1. Five (5) days continuous Privilege Leave needs to applied and approved in LMS
portal. It is mandatory for employee to submit proof of leave. Ex- LMS leave
approved screenshot.
2. Original travel tickets need to be submitted for claiming LTA; Submission of
Boarding pass along with tickets is mandatory for air travel

32. Why full amount of road transport is not considered under LTA exemption?
As per Income tax, LTA exemption is applicable only for domestic Air & Train transport.
If the journey is by road transport, then equivalent first-class AC rail fare is considered.

33. Can I carry forwarded my LTA?

Any unclaimed LTA cannot be carried forward to next year.

VI. Meal Card (Sodexo cards)

34. What can the meal cards be used for?
Meal cards can be used for buying food & non-alcoholic related beverages via CG
authorized meal card vendor (Sodexo Meal Pass Cards).

35. What is my eligibility for meal cards?

The minimum and maximum enrollment limit is fixed at INR 2200 per month.

36. When does the money get loaded to the card and from whom can I get it?
Sodexo Meal Pass Cards will be loaded for employees every month if they have opted
for it. The Card will be distributed through the Sodexo Distribution POC’s.

37. Who do I reach out to in case I have any queries?

1. For Card related: You can reach out to the Sodexo team for any queries
[email protected]
2. For Card loading related: please raise a ticket on India Talent Page -> Helpdesk
and Support -> Service Central

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VII. Vehicle & Driver Reimbursement
38. Is it mandatory for the vehicle to be in employee’s name?
Vehicles should be in employee’s name.

39. Can the vehicle be used for personal use?

Employees can opt for vehicle reimbursement for official and personal use.

40. Is reimbursement allowed for 2-wheelers?

Reimbursement is applicable for use of cars only. Reimbursement claim of two-wheeler
will not qualify for a vehicle reimbursement.

41. What is the maximum allowance for the different specification of cars and
what all can be reimbursed?
Maximum tax benefit for reimbursement will be calculated as per the below defined
limits:
Cubic Capacity of
Upto 1600 CC More than 1600 CC
Engine
Fuel Reimbursement
INR 1,800 INR 2,400
(Per Month)
Driver Salary Reimbursement
INR 900 INR 900
(Per Month)

The allowance can be reimbursed towards maintenance, fuel & insurance cost of the
vehicle and will be non-taxable.

42. What is the maximum reimbursement for a driver?

A further amount of INR 900 per month can be reimbursed towards driver allowance
and will be non-taxable.

43. How can I apply for Self-Owned Car / where should I submit my car
documents?
You must upload car registration book (RC book) and Insurance on the Payroll portal
along with the bills copy, at the time of claiming reimbursements. Uploading RC book
copy is one-time activity and should be done while uploading bills for first time in the
financial year.

44. Can an employee availing company paid bus facility or conveyance allowance
avail this allowance?
Employees who are availing the company bus/ cab facility or conveyance allowance
cannot opt for vehicle reimbursement.

45. Why is my driver salary claim is not processed?

Possible reasons are:
1. It’s important to mention the month for which the driver salary has been paid.
2. Driver should sign on the receipt.
3. Driver’s license is mandatory.
4. For Self-Owned Car claims driver salary paid per month is only INR 900.
5. If driver salary amount is more than INR 5000 then revenue stamp should be
there on receipt (except in Karnataka state).
6. Claim amount is more than eligible amount.

46. Toll Fare / Parking expenses are considered under car maintenance?

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 No, it is not considered.

VIII. National Pension Scheme

47. Who are eligible for NPS?
Permanent Employees in Grade C and above can opt to contribute to NPS.

48. How much can I contribute to NPS?

Employer’s Contribution Investment up to 10% of Basic salary is exempted from
income tax, there is no cap in terms of absolute value. NPS will be adjusted from your
OAAR 2 (if part of Pay Letter) or Personal Allowance.
You can read the NPS policy via following link

Claim Process
49. How to claim OAAR?
Employees can claim OAAR from below path by logging on to Payroll(HGS) portal.
 Logon to Portal.
 Select OAAR Claim option.
 Select Claim Type. Selected option will be highlighted.
 Click on Raise Claim.
 Provide all required details.
 Click on Add/Save button.
 Click on Declaration check box.
 Click on Submit.
 Please read HGS User Manual available under Downloads under DASHBOARD

50. My claim is not yet processed. Why is it so?

Possible reasons are:
 You may have submitted claim after the payroll cutoff date i.e. 15th of the
month.
 Claim may be rejected. Visit Payroll (HGS) portal and see OAAR Claim tab for
rejection reason.
 In case of further query, raise ticket on HGS portal – QRMS.

51. Why less amount is paid against the claim submitted?

Possible reasons are:
 Partial bills are likely to be rejected. Claim may be rejected. Visit Payroll (HGS)
portal and see OAAR Claim tab for rejection reason.
o Once the bills are rejected employee must re-generate a fresh/new voucher
under “OAAR Claim”, and then upload all the relevant documents (including
any proofs uploaded in the prior voucher) under Image Upload. Payroll will
not approve the rejected voucher or rejected voucher cannot be enabled
again for uploading the supporting documents.

 Bill are reimbursed on pro-rate basis. Employees need not upload the same bills
again.
o Bills will be restricted to the extent of the monthly eligibility and paid, and
remaining bills will get carried forward to the subsequent months for
payment. Employee should not resubmit the approved bills again in the
next month, system/process will handle this

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52. Can employees claim for expenses of previous month in the current month?
Yes, employees can claim for previous month.

53. What will happen to unclaimed reimbursement?

Unclaimed amount will be paid as taxable under heading OAAR in March Payroll.

Bills Submission Rules

54. Rules of Bills submission:

 Employee must generate separate Claim id for separate category of bills. For
example: To claim Vehicle bills, generate voucher id under Vehicle option and
likewise.
 Employee must mention Claim No. / Employee Code / Employee Signature on
face of bills. Under unprecedented events, where employee is not having access
to printers and scanners, employee must copy bills in word or paint tools and
type the above tails. Signatory is not mandatory in such conditions.
 Employee must mention correct Claim No. on bills. For example, if employee
mentions LTA Voucher id number on Vehicle bills and vice versa then bills will
be rejected.
 Reimbursement team reserves the right to reject bills / Hold bills in case any
clarification is required.
 Once the bills are rejected employee must re-generate a fresh/new voucher
under “OAAR Claim”, and then upload all the relevant documents (including any
proofs uploaded in the prior voucher) under Image Upload. Payroll will not be
able to approve again the rejected voucher or rejected voucher cannot be
enabled again for uploading the supporting documents.
 Employee must visit OAAR Claim option to check if any bills are rejected. This
option will get Active after salary for the month is processed.
 Employee will be able to read reject reason here.
 Under Telephone Reimbursement:
o Employee can submit post-paid bills. Pre-paid recharge voucher. Connection
must be on Employees Name.
o Only 1 mobile, 1 landline and 1 internet connection per employee.
o Internet / Broad band bills/Landline bills are to be in employee’s name.
Employee needs to attach supporting document in such cases. The address
on bill and address proof should match.
o Only 80% of the value of bill will be reimbursed. We assume 80% of the
calls you make is official and 20% is personal.
o GST number is mandatory for post-paid bill payments.
 Under Vehicle Reimbursement:
o Car must be on Employees name.
o It is mandatory for employee to upload copy of RC book every financial year.
o Employee must upload RC book copy along with bills while submitting bills
for the first time in the financial year.
o If in case employee changes vehicle, then upload copy of new RC book along
with bills.
o Only Fuel / Maintenance / Insurance bills are allowed.
o Bills should have VAT / TIN numbers on bills.
o Employee using company provided transport cannot avail this option.
 All the bills will be reimbursed on pro-rate basis. Employees can claim and will
be reimbursed only accumulated amounts. Future accumulations will not be
process in present.

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  Please read OAAR policy available on India Talent Page for in-depth
understanding.

Note: Employee is solely responsible for any kind of Income Tax query they
receive from ITR department. Hence please upload valid bills only.

Point of Contact
1. For any queries please raise ticket on Payroll (HGS) -> QRMS
2. For any Escalations, please raise a ticket on India Talent Page -> Helpdesk and
Support -> ServiceCentral> India Payroll Support
3. You can read more about the policy on Talent.
>> About US >> Support Functions >> Human Resources >> HR Policies >>
OAAR

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