Income from salary

This query is : Resolved

Raghav (Querist)
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04 June 2012 Dear Sir,

Kindly let me know in case of higher salary paid employees what kind of benefits I can get under the new Income tax provisions.

I am being paid under the following head:

Basic+DA ( Taxable), HRA ( Exemption As per current provisions),Transport Allowance (Exemption Rs 800 p.m.) , Medical Reimbursement (Exemption Rs 1250 p.m.),Educational allowance ( Taxable) and Special Allowances (Taxable).

Apart from this we are getting the deductions under 80C, 80D.

I request you please let me know what type of salary head we must have which will be fully exempt or partly exempt under the current provisions apart from which I have mentioned above.

Kindly request you to suggest me the same so that I can request my concerned people for getting the maximum benefit of Income tax so that I will have limited liability of Income tax.

Thanks & Regards,
Raghav Jha

CA Syed Raza Abbas Rizvi

CA Syed Raza Abbas Rizvi (Expert)
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06 June 2012 Education allowance is not 100% taxable it is exempt @ 100 Rs per month per child upto two children

Hostel allowance is exempt @ 300 Rs. per month per child upto two children

Medical allowance is 100% taxable but medical reimbursement is exempt upto Rs. 15000 in general case.

Leave travel concession may be another option.