Hi guys, My principal gave me a job to do….plz make some suggestions….
Mr. A, a client, located in NOIDA draws rs.3lak pm(as pure cash component of salary).His company provides him HRA of Rs.90K pm…moreover company is ready to bear the expenses of furniture to be provided at his residence.
Now practically speaking Rs.90k as a monthly amount cud b used 2 pay EMI for a decent flat in his locality.
In this regard Mr.A seeks to kno if there is anyway by which he can disguise the above transactions such that-
1. Maximum tax benefit is derived
2. He purchases a flat, simultaneously draws an HRA, and personally pay off the EMI
3. the company does not know his personal financial transactions.(ie. Purchase of flat)
Looking forward for a solution that more of tax planning rather than tax evasion……
....
CAclubindia
