Pls.advice the break-up for payment of Tax [Director Rem.]

1007 views 1 replies

Dear Friends,

Please advice on the break-up of director remuneration for the details mentioned below :

Gross Salary per month = 30,000/- [ 3.60 L p/a ] - He is paying a Rent of 4000 p/m and invested 20000/- in TATA AIG

I have suggested : 1.Basic = 11,000 + 2.Special Allow.=6000 3. HRA = 9000 4.Incentive = 4000/- = 30,000 -

Considered HRA exemption of : Actual Rent Paid - 10% of Basic i.e.

[4000x12]=48000 - [11000x12]13200  = 34,800/- would be claimed under HRA exemption while filing the return - and the taxable income would be = [ 360000-150000-34800-20000] = 1,55,200 and the Tax Would be Rs.16040/-

What's you views on this - is it ok ...!

Replies (1)

Basic - 7500

HRA - 3750

Transport Allw. - 1250

Other Allw. - 10000

Incentives - 7500

Total - 30000

Based on above, HRA exemption now comes to Rs.39,000 which results in Taxable income of Rs.3,01,000 and tax liability of Rs.15,200

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