Tax planning for f.y. 12-13

Adjust your BoB as below:

Sundry Medical to 15000 p.a

Food Coupons to 36000 p.a

LTA to be changed as per actual bills which can be produced after travel.

HRA to be added as per actuals.

Rest all will be taxable for the BoB.

Hi,

Increasing the amount of Food Coupons helps in tax saving but such coupons are discounted in market with tax of 7-8%.

Some of my client do't want to recieve such coupons.

Is it advaisable to take food coupons insted of cash.

Regards,

Pragnesh

Yes, you can take food coupons instead of cash.. They are not treated as perquisites.

Hi

I agree food coupons are best way to save tax.

But it is rally not usefull to salaried people. like on coupon of 100Rs  we got goods worth rs 93 and 7Rs goes for tax.

So it reduse purchasing power.

I want to take decision whether go for coupons or for Cash salary?

Regards,

Pragnesh

Either way you will save a bit on tax if you go for coupons.

In case of cash salary, you will have to pay tax on the whole Rs 100 (as per slab) Even in case of 10% , it comes to Rs 10. But in case of Coupons, its Rs. 7. Hence you save Rs 3 w.r.t. cash salary.

Am i correct sir??