Working from home — tax implications

If you're a salaried employee, you generally can't deduct your home-office expenses — electricity, internet, furniture — from your salary. Salary income doesn't allow these as deductions, so a salaried remote worker's home-office costs aren't directly tax-deductible.

Where your employer reimburses specific work-from-home costs against actual bills — internet, equipment — these reimbursements can be more tax-efficient than the same amount paid as taxable salary. Structuring part of your package as genuine reimbursements helps.

If you're self-employed or freelance and work from home, it's different — a fair share of your rent, electricity, internet and a workspace's costs are deductible business expenses when you keep books. This is a real advantage of business income over salary.

Working from home doesn't remove your HRA benefit — if you rent and your salary includes HRA, you can still claim the exemption (old regime) based on the rent you pay, regardless of where you work. Keep your rent receipts as usual.

If you work remotely from another country for an extended period, your residential status and the taxability of your income can change. If you're a remote worker spending significant time abroad, track your days and get the treatment right.