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Need urgent help

deepa (Accounts Manager) (75 Points)

19 September 2012

Hello Everyone,

Need urgent help. I need to calculate salary Breakup of Rs. 50,000 pm (Rs. 6,00,000 pa) in such a way that tax liability should be least. I dont know how to calculate it. So, plz if any1 cn help!!!!!!!

Please help. I need to do this urgently!!!!!!!!!!!!

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6 Replies

Varshit Shah (Self Employed) (676 Points)
Replied 19 September 2012

--> Certain Items which are Exempted u/s 10(14) of IT Act

Transport Allowances - upto 800 pm
Meal Coupons (Sodexho) - upto Rs. 50 per meal
Education Allowance - 100 pm per child (Max. of 2 children)
Medical Allowance - upto Rs.15000 per year

--> If an employee not staying in his/her own house or his/her doest own any house then HRA u/s 10(13A) (Pls check condition - if you have any doubt feel free to ask )

Even you can consider Employer's portion of PF upto 12.5% (same u'll get deduction u/s 80C)
While calculating Tax on salary you can also conside Housing Loan repayment if any made by an employee. i.e. Interest Factor as Loss under House Property & Principal Factor under 80C.

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Varshit Shah (Self Employed) (676 Points)
Replied 19 September 2012

Some mistake in above line

--> If an employee not staying in his/her own house or spouse of such employee does not own any house then HRA u/s 10(13A) (Pls check condition - if you have any doubt feel free to ask )