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Element Non Taxable but Niable

Summary:

Hi Experts,

We have a requirement to have an element Niable but not subject to Taxes. Any thoughts on what is the best possible way to achieve this.

One way around is to create this as irregular (Since this is non Recurring) earning and eliminate this element from the taxable earnings balance.

But want to see if anyone has different thoughts or if they have handled this differently.

Thanks in advance,

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