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.
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.
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