26 May 2012
i m to do restructure the salary of individual withdrawing amt. of 30000 with min investments so i restructured it like this Basic-12000 DA -2000 City copensatory allowance-1500 Uniform Allowance-500
(because material provided by company and employee has to expend steching exp.)
Conveyance allowance-3000 Daily Allowance-1000 Children education and hostle allowance-1000 Trevellinh Exp. -1000 HRA - 5000 Telephone reimbursement-1000 Medical reimbursement- approx 2000
Whether i make propeer distribution or i should change smthing
26 May 2012
You can even include i) Meal Expenses up to Rs. 3,000/- per month, ii) Leave Travel Allowance for local domestic travelling on actual reimbursement basis, iii)Tax free gift up to Rs. 15,000/- p.a.can also be provide by employer iv) Books & Periodical Reimbursement can also be provided
At the same time you can exclude following things which do not result into any tax benefits but will reduce your basic salary for claiming exemption under HRA and others
- City Compensatory allowances - Travelling Expenses (If no actual reimbursement is there ) - Conveyance Allowance can also be lower down to Rs. 1000/- as benifit available is only Rs. 800 per month.
26 May 2012
Reimbursement of telephone expenditure is fully exempt or upto a limit. If any person maintains two mobile, whether he is elible to get exemption on whole exp.
CAclubindia
