salary related

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HARSH (Querist)
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29 April 2010 if an employee gets a job and he is offered a package of Rs.400000/- p.a and is asked how he wants the breakup of salary so that his tax burden is totally reduced

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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29 April 2010 Pls metnion What are the components of salary to which you are allowed to allocate this amt?

basically it is Basic, HRA, LTA, Medical reimbursement, DA, ..

HARSH

HARSH (Querist)
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29 April 2010 its a pvt. ltd. co and the employee has been given the option to decide his basic hra etc he will be given as he says

CA Sanjay Jha

CA Sanjay Jha (Expert)
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29 April 2010 For maximum getting exemption and lower taxabale salary following structure to be made.

Basic
HRA 50% of Basic
Conveyance
Out of pocket exp -it is not a part of salary
Medical Reimbursement
Canteen
etc

CA Archana

CA Archana (Expert)
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29 April 2010 You should keep it like
Basic Salary-17880
HRA-40%/50% of basic as the case may be.
Education Allowance-800p.m
Transportation expense(against bills)-5000p.m.Or Conveyance allowance-800p.m.
Medical reimbursment against bills-15000p.a

Opt for LTA which will be tax free once in two years-15000p.a.
In this way Non taxable income will be
LTA,Medical reimbursment,Education allowance,Transportation & vehicle expenses reimbursment(I have taken it 5000p.m),HRA
I hope it will solve your purpose.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 April 2010 Basic,
HRA,
LTA,
Medicalreimbursment,
Education allowance,
Hostel expenditure allowance
Transportation allowance
Food Facilites
& vehicle expenses reimbursment,

HARSH

HARSH (Querist)
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30 April 2010 what is an education allowance .and food facilities

HARSH

HARSH (Querist)
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30 April 2010 kindly help me regarding education allowance if if an employee incurs 7000 pm on education can he reimburse from his employeer and such reimbursment is tax free

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 April 2010 Sorry. I forgot to mention as children education allowance. Rs.100 per child per month maximum two child exempted

HARSH

HARSH (Querist)
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30 April 2010 sirjee any other way to reduce tax burden from salary

HARSH

HARSH (Querist)
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30 April 2010 what about helper allowance can we claim around 50000 as helper allowance

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