Salary Setting i..e HRA, Conveyance , Transport etc urgent

This query is : Open

Vijay Parmar (Querist)
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04 January 2011 hello sir,

one of my client have 10 employee...
one of the employee salary is 90,000/- pm..

so i would like to bifurcate in
1) Basic
2) DA
3) Conveyance
4) Transport allo
5) Educ. Allowance
6) HRA

so reduce tax burden on employee and enjoy exemption under section 10...

so plz help me and bifurecate this salary in 6 heads. so tax burden on employee is reduced...

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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04 January 2011 Put 40% of amount in HRA, 2400 in education, and 9600 in conveyance.

Vijay Parmar

Vijay Parmar (Querist)
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04 January 2011 i have read that

1) transport allowance is exempted upto Rs.800 PM

2) and conveyance allowance is full amount of received (only if employee incurred this exp in office work only.)

so i use transport Rs.800 and conyeance Rs.8000 (as full admissible)

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