Salary-investment declaration form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2013 Dear All,

Please suggest me for following:

My employee has submit declaration form in which he has declared 15k for medical allowance.

his salary structure is as follows:
Basic- 15000
DA-9000
Trpt. Allowance-800
Spcl allownce-15200
Total-40,000pm

My question is that whether he will get exemption of Rs. 15k on submitting his medical bills/reimbursement?

Urgent advice required
Thanks

@VaibhavJ

@VaibhavJ (Expert)
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21 August 2013 Hi,

In this structure, there is no mention of Medical reimbursement, so either you should split Spl. allowance to accommodate the same or he can not get benefit of the same.

Thanks

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CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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22 August 2013 if have allownce of Medical / hence you can reimbursed and exempt from tax

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Thanks to both experts!

I am goin to split spcl allowance to Medical reimbursement so that he can claim exeption upto 15k.

Thanks Again!

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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22 August 2013 Yes you can slipt into monthly 1250 from Special Allowences

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@VaibhavJ

@VaibhavJ (Expert)
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22 August 2013 hey

one more irregularity i see is you dont have HRA. You may reduce DA to give benefit of HRA.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 I have revised the structure as follows:

P.a P.m
Basic 168000 14000
HRA 192000 16000
Trpt 9600 800
Spcl All 95400 7950
Total-Sub 465000 38750
Medical Reimburs15000 1250
Grand Total 480000 40000

Now is it ok? or any changes requires?

Pl suggest

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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22 August 2013 Yes you can change to 40% of Basic and you can remove the DA . so many compnay are not gave DaA. hence you can do as HRA . so they have exemption of U/S 10 if they produce rent

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@VaibhavJ

@VaibhavJ (Expert)
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22 August 2013 HRA should not be more than Basic. It should be between 40-55% of Basic.

Also change Sp. Allowance to CCA. Since Sp. Allowance word is disputed & may attract PF.

Thanks

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 is it ok now? :p

P.a P.m
Basic 216000 18000
HRA 118800 9900
Trpt 9600 800
CCA 120600 10050
Total-Sub 465000 38750
Medical Reimburs15000 1250
Grand Total 480000 40000

@VaibhavJ

@VaibhavJ (Expert)
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22 August 2013 It looks fine. Also to reduce Tax liability you may consider allowing Mobile Reimbursements Rs. 1000 p.m. & Fuel Reimbursements Rs. 2000-3000 p.m.

Cheers!!

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Wow!!!
Thats gr8

One more query, so employee has to submit mobile bills to us? (whether connection or billing name should be of employee or employer)???

and it should be for official purposes only?

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@VaibhavJ

@VaibhavJ (Expert)
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22 August 2013 Hi,

Mobile bills would be in name of employee only.

Majorly it should be for official use.

Thanks

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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22 August 2013 not a issue. because employer can treat as perquisites . if he gave all bills . thats should be allowed under section

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Thanks a ton to both of you!!!

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