Tax planning related to salary
This query is : Resolved
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
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.
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
thank u very much for valuable information.
exemption of meal expenditure is allowed as reimbursement of actual expenditure or allowance
exemption of meal expenditure is allowed as reimbursement of actual expenditure or allowance
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.
26 May 2012
Yes Meal Expenditure is allowed up to Rs, 50 per meal only in form of meal voucher.
Reimbursement of all expenses will be allowed. as it will be first added in income of person first and than will be deducted from same.
Reimbursement of all expenses will be allowed. as it will be first added in income of person first and than will be deducted from same.
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