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salary break up

dinesh bhandary (Manager- Finance & corporate a) (82 Points)

26 September 2007

dear sir,

one of our director getting salary of around 20 lalk pa. and he want to have a break up of salary in such a way that. he will pay less tax.

i already taken into account his saving of 100000 under sec 80 c , HRA,Conveyeance allowance of 800 pm, children allowance and hotel allowance of rs.800 pm,Lta,medical benfeits.

i want suggestion regarding how i can break up the allowance given to him. so that he will pay less tax as per income tax act.

Present salary break up is

basic

hRA,

Conveyance allowance,

children education and hostel allowance,

lta,medical.

with regards

dinesh

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11 Replies

M.Aravinda Kumar (Finance) (83 Points)
Replied 26 September 2007

You can also suggest to divert the salary as follows, 1. Cash paid food coupons like sodexho 2. Washing allowance 3. Technical fee (paid by him to his assistance) 4. Professional fee paid to him by the company For all this you have to do some back ground work.

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(Guest)

hi one of the person employed in my company getting salary 20000. pm. breakup is basic-9500 hra-6000 conv-3000 medical-1500 there iany possible breakup to save the tax.

Mohan Reddy (Manager-Accounts) (36 Points)
Replied 27 September 2007

Hi Sir, What are the Max limits for 1. Cash paid food coupons like sodexho 2. Washing allowance 3. Technical fee (paid by him to his assistance) How we will pay separately Professional fee without considering as other income in form 16.

(Guest)

In addition to salary credited in bank A/c, also entitled for following additional allowances for official purposes. 1. Soft Furnishing-Rs5000/month 2. Telephone Reimbursement-RS. 5000/month 3. Washing allowance-Rs 5000/- month 4. Gas/Water/Electricity-Rs. 4500/month 5. Entertainment Reimbursement-Rs. 4000/month Above was paid in cash so far& non taxable, however now company has decided to give cheque for this amount. So kindly suggest me, whether I can avoid tax on above allowances if I produce bills for above amount every month. regards Rashmi P

(Guest)

Dear sir,

What is the basis of giving washing allowance to employees. Is there any parameter for paying such an allowance as a part of a salary break up.

Please advise

with regards.

SUBRATA

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sunil kumar (services) (23 Points)
Replied 04 October 2008

DEAR SIR,

PLEASE SEND WHAT IS DEFFERED TAX ASSEST & DEFFERED TAX LAIBILITY

(Guest)

Originally posted by :dinesh bhandary

Hi,

I hv not understood the solution given below. I am drawing similar salary and want to know the best break up with figs if you can... Tx.

dear sir,
one of our director getting salary of around 20 lalk pa. and he want to have a break up of salary in such a way that. he will pay less tax.
i already taken into account his saving of 100000 under sec 80 c , HRA,Conveyeance allowance of 800 pm, children allowance and hotel allowance of rs.800 pm,Lta,medical benfeits.
i want suggestion regarding how i can break up the allowance given to him. so that he will pay less tax as per income tax act.
Present salary break up is
basic
da
hRA,
Conveyance allowance,
children education and hostel allowance,
lta,medical.

with regards
dinesh

(Guest)

Dear Sir,

I just want to know, one of friend having monthly salary of Rs 20,000/- ( he is working in small proprietory firm )

Can you suggest me break up of Rs 20,000/- as per as income tax act is Concered ?

Presently company is deducting Profession Tax from his Salary .

Regards,

Avinash Vaidya

Austin (HR-Executive) (20 Points)
Replied 06 December 2008

Hi Sir..

I am working in a new company just opened, now we are hiering some employees for our organization.

Sir can you help me out for doing salary break up for these employees. salary range is 3000 to 6000, and 6000 to 14000. We are decided to pay them fixed salary including of ( basic+D.A., H.R.A.) other allowences.

Could you please guide me how to break the fix salary into these components (above mentioned) accourding to9 percentage like........

(Basic---%????, D.A.---%???... so on...)

I hope you will guide me in this.

Thanking you

Regards

Austin