Hi All,
I got an offer from a new employer. The salary structure is bit different from the previous company which is mentioned below. This comes under flexi basket. I wanted to know what should i opt for in order to minimize income tax on my income.
House Rent Allowance (HRA)
Meal Allowance
Domiciliary Medical Allowance
Company Leased Car
Fuel (Personal Car)
LTA
Children Education Allowance
Supplementary Allowance
Any inputs will help. Thanks.
From India
I got an offer from a new employer. The salary structure is bit different from the previous company which is mentioned below. This comes under flexi basket. I wanted to know what should i opt for in order to minimize income tax on my income.
House Rent Allowance (HRA)
Meal Allowance
Domiciliary Medical Allowance
Company Leased Car
Fuel (Personal Car)
LTA
Children Education Allowance
Supplementary Allowance
Any inputs will help. Thanks.
From India
Also to add to this there are two deductions shown under Provident Fund and Gratuity. I believe Gratutiy cannot be shown as deductions?
From India
From India
If I understand your question correctly, you want to pick up some allowances from this flexible basket to help reduce your income tax.
If yes, then I would advise you to pick following:
1. HRA (this is the biggest fish - will help you reduce tax a lot if you stay in a rented house).
2. Meal allowance (Upo 3000 INR per month are tax free if you receive meal coupons like Sodex-ho or ticket restaurant) - You can even use them for buying grocery and at restaurants outside office).
3. Domiciliary medical allowance (Upto 15000 per year is tax free if you submit chemist/doctor bills)
4. LTA (This amount is tax free if you submit the bills for your travel - only 1 permitted in block of 2 year but family can be included).
5. Children education allowance (if you have children - not a big factor in saving income tax though)
Let me know if you need more information.
From India, Delhi
6If yes, then I would advise you to pick following:
1. HRA (this is the biggest fish - will help you reduce tax a lot if you stay in a rented house).
2. Meal allowance (Upo 3000 INR per month are tax free if you receive meal coupons like Sodex-ho or ticket restaurant) - You can even use them for buying grocery and at restaurants outside office).
3. Domiciliary medical allowance (Upto 15000 per year is tax free if you submit chemist/doctor bills)
4. LTA (This amount is tax free if you submit the bills for your travel - only 1 permitted in block of 2 year but family can be included).
5. Children education allowance (if you have children - not a big factor in saving income tax though)
Let me know if you need more information.
From India, Delhi
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Typical salary breakup.jpg
Salary breakup.xls
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