Please Advise on how to save tax on allowances

Dear All

          Forgot to add that  I do have a car (Car Loan EMI 6300)  and a driver.

          Thanks

 

 

 

In my view u dnt hav to pay any tax on the following allowances because the employer pays FBT tax.so no need to wory.

Dear Ankit

                 My employer requires that employees submit bills for Medical,Telephone  and Uniform(laundry expenses).

              How do I save tax on car and driver related allowances ?

            Thanks

            Sugata

In My view, 1. there is no term called car allowance under income tax act, so it can be taken as special allowance and taxable in the hands of employee. 2. Driver salary is covered under FBT provision and accordingly employer is liable for FBT. 3. Telephone allowance is exempt. 4.Transport allowance is exempt up to Rs. 600 Per Month. 5. Uniform allowane is wholly exempt.