Tds on salary,tds deduction & and how to avoid it

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2015 Hi!
I am complety illiterate in terms of taxes.I have joined a company where my salary break-up is as follows:-
CTC- 3Lakhs/annum :Rs. 25000 P.M
Basic-RS. 12500(50% of gross),HRA 25% RS. 6250,Supplementary Allowance 12.60%- Rs. 3,150,Conveyance Allowance 6.40%-Rs.1,600,Company's contribution to PF- Rs.1500.
Apart from this i will be provided with Travel Reimbursement of Rs.2750 p.m and phone rembursement of Rs.500 p.m and Mediclaim policy (me and my dependents and Group Accident Insurance)

Please tell me how much TDS will be deducted and how i can avoid it?
I am just 22 years old & studyng so i don't have children or ppf a/c etc. I just have 2 savings A/c,FDs.Home is also not on rent.

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)
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06 November 2015 Hello
Baisc is always fully taxable.
As you stay in your own house ,HRA will be fully taxable in your hands.
Supplymentary allowance is also fully taxable
Conveyance allowance is Exempt upto Rs 800pm.
Any type of reimbursement is not taxable in the hands of employee.
So your total salary willbe (12500+6250+3150+1600+1500)=25000pm
or Rs300000pa
from this
Rs 800 pm will be deducted total Rs 9600
hence balance remains Rs300000-9600= 290400
Taxable salary will be Rs 290400
from this you will get deduction under Section 80C
Pf Contribution Rs 1500pm or 18000pa
you can also get deduction f life insurance premium if you pay any or any other mediclaim policy(other than the above you mention)
Considering that you do not have any other investments
you total taxable income will be Rs290400-18000= 272400
Tax on this will be 2240pa or 2240/12 = 187 pm
To save this tax you can investin life insurance