29 April 2010
if an employee gets a job and he is offered a package of Rs.400000/- p.a and is asked how he wants the breakup of salary so that his tax burden is totally reduced
29 April 2010
You should keep it like Basic Salary-17880 HRA-40%/50% of basic as the case may be. Education Allowance-800p.m Transportation expense(against bills)-5000p.m.Or Conveyance allowance-800p.m. Medical reimbursment against bills-15000p.a
Opt for LTA which will be tax free once in two years-15000p.a. In this way Non taxable income will be LTA,Medical reimbursment,Education allowance,Transportation & vehicle expenses reimbursment(I have taken it 5000p.m),HRA I hope it will solve your purpose.
30 April 2010
kindly help me regarding education allowance if if an employee incurs 7000 pm on education can he reimburse from his employeer and such reimbursment is tax free
CAclubindia
