Dear Arpita,
Earlier Companies used to pay part of the salary in the form of soft furnishing allowance to enable its executives to purchase soft furnishings like pillow covers, curtains etc. But now it has been made taxable therfore nobody is giving this allowance. If some companies are doing it,they should stop doing it because if they pay it and do not deduct tax on it, they shall have to pay 33% of paid amount as Fringe Benefit Tax which will be equal to or more than the tax saved by the employee. Therfore why continue with this allowance.
KKT