Salary Planning

This query is : Resolved

MoHaN GoYaL ( MTAS) (Querist)
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09 October 2009 Head Guidelines / Limits
HRA Upto 60% of Basic
LTA Upto 33% of Basic
Medical Upto Rs. 15,000/-
BRR Upto 10% of Gross Salary
Fringe Benefit Tax 9% on BRR.
Other Allowances Any Balance leftover

BRR-Business related re-embursement.Kindly suggest me my 40000pm segretion into abve criteria..

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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10 October 2009 No FBT in current year,

How much amount will be tax free out of HRA received depends on quantam of Basic + DA and actual rent paid,

LTA is tax free once in two year,

Medical Reimbursement upto 15000 p.a against bill is tax free (should not be given as allowance in monthly pay )

Tax free reimbursement can be only for Telephone and mobile and broadband.

Others reimbursements become taxable unless 100% of such is incurred for business purpose in Current Year as FBT has been abolished.