Salary restructuring to save IT

This query is : Resolved

Rishi K (Querist)
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08 October 2008 One of my client, 60, is getting a monthly fixed salary of Rs. 50000/- pm (Rs 600000/- pa). Other income include VRS pension Rs.1,50,000/- pa, Interest - Rs.4000 pa, Dividend Rs.12000 pa.

How he should get the salary re-structured from his employer to get maximum IT benefit. Pl offer suggestions with different options.

Sanjay

Sanjay (Expert)
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09 October 2008 He can get the salary in the form of items being subject to Fringe benefit tax so that the tax will be at around 6 - 7% instead of 33.99%. For instance, car driver expenses, Car petrol reimbursement, club subscription, newspapers/periodicals subscription, Meal vouchers, Medical allowance upto Rs.15,000 p.a. which is exempt, Leave Travel allowance once in two years to be substantiated by actual bills.