Salary head when we can claim maximum benefit for i.t

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This query is : Resolved

Raghav (Querist)

07 May 2012 Respected Sir,

We are giving the structure as follows:
Basic & DA, HRA, Transport Allowance, Education Allowance and Special Allowances.

Here, we can only get benefit maximum of 40%/50% in respect of Non Metro or Metro cities in respect of HRA and Rs 800 p.m. which is the fixed amount of Transport allowances.

I would like to know what may be the other head which will reduce the income tax liability from Employee end.

karan pahuja

karan pahuja (Expert)

07 May 2012 An Employee Can get the food allowance upto Rs 18,000 p.a.He may also have the deduction U/s 80c Upto Rs 1,00,000 Into which he can make the investment In mutual funds, PPF a/c, Lic Policy, Various Post Offices saving Schemes, & Now Onwards If You Invest Upto Rs 20,000 in Infrabonds you get the tax saving on this also.& If An Assessee Taken The Home Loan then into that he get the benefit on the repaying his principal as well as on the interest also.on principal he get the tax benefit upto rs 100000 pa u/s 80. & on interest rs 1,50,000 pa. u/s 24

karan pahuja

karan pahuja (Expert)

karan pahuja

karan pahuja (Expert)

Tushar Desai

Tushar Desai (Expert)

07 May 2012 PF will serve as a great option. PF deducted from salary is exempted u/s 80C. Moreover, the employee part is also non-taxable if employee doesn't withdraw PF before 5 years. So, you can include Employer's part of PF in CTC and give tax-benefit to employee.

One more thing is Superannuation fund. 1 lac under this fund is tax free. This can serve well to high-salaried employees.

Then, a company can provide Group Medical Insurance. But, this will give tax-benefit to the company. However, it can save policy premiums of employees. Today, even the smallest mediclaim costs 3000-4000 a year for a family of 2.

Raghav

Raghav (Querist)

07 May 2012 Dear Karan Sir,

Thanks to you.

But from 2012-13 onwards I think exemption U/S 80CCF has been removed in respect of investment in infrastructure bond.

Kindly suggest me the same except 80C and other deduction where employee need to invest amount but I am talking about the salary head like food allowances where without making investment employees tax liability will automatically reduced.

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