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Salary break up for tax savings

Suresh Chandra (Manager - Accounts) (206 Points)

22 July 2010

Dear Sir,

My Salary is 40000 Per month and break up as follows:

Basic 24000

HRA 12000

Conveyance 800

Medical allowance 1250

Special allowance 1950

Please give me the Salry break up other than this for saving tax. and other provisions under IT act.

Thanks / Regards,

SureshChandra

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7 Replies

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 22 July 2010

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

mehul kishnani (student) (264 Points)
Replied 22 July 2010

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

Harpreet (* * * * * *) (1670 Points)
Replied 22 July 2010

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.

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 22 July 2010

dear harpreet

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

OldSchool (None) (50 Points)
Replied 22 July 2010

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.