Salary break up for tax savings

dear sir

medical allowance and special allowance are fully taxable.conveyance allowance is subject to expenditure.instead of conveyance u can claim transport allowance which is exempt upto rs.800 p.m.if u have pf contibutions then u can claim them as deductions.u can claim deduction u/s 80C.

regards

tarun rustagi

Dear suresh
you can invest u/s 80c up to rs one lac in eligible
investments like pf etc further now from this yr 20000 in infra
bonds means you can claim deductions up to that amt
from your taxable income. Further medical insu
premium also eligible for deduction

If Salary is 40000 Per month so break up as follows:

Basic 23000

HRA 11500

Transport Allowance 800

Medical allowance 1250

Uniform Allowance 1500

Special Allowance   1950

U can get exemption of Transport allowance, medical allowance provided u r providing the bills, uniform allowance provided u r providing the bill, hra exemption if u hire a house on rent. U can save tax on Rs.3550/- per month (42600/- per year) except hra.

dear harpreet

plz clarify that medical allowance is exempt if we submit bills.in my view allowance is fully taxable.

Originally posted by : tarun rustagi
	dear harpreet plz clarify that medical allowance is exempt if we submit bills.in my view allowance is fully taxable.

HRA, medical allowance, telephone allowance is non-taxable if you can furnish the bills.

Right word is Medical Reimbursement not medical allowance, medical allowance is taxable 

what will be right break up to minimise theTax on Salary Income if My salary is Rs. 1,50 lakhs per month... please reply as soon as possble.