Plz help me in deciding the CTC breakup (18 LPA) - tax exemption
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robosapiens Started The Discussion:

Hi,

Can some one help me to decide the CTC breakup for my salary. I am the director and promoter of a pvt Ltd company in Noida.

i m planing to go for a CTC of 18 LPA
Please breakup this slary for maximum tax benefits.

regards

pradeep

pon1965 -  Member Since: May 2009
Pradeep,

Ask for 40% as basic of Rs.18L. That means 6.4 L. In Basic, you can claim as 50% of basic as HRA as Noida falls under NCR. (HRA minus 10% of your basic is tax exempted).
You can ask for 15000/- towards Medical assistance (tax exempted subject to production of bills)
You can ask for 2400/- P.a as Children Edu Allowance (if you got 2 children)
You can ask for 240000/- towards fuel & maintenance charges (if you own 4 wheeler) or 60,000/- p.a. for 2 wheeler. If you don't own any vehicle, 9600/- towards conveyance allowance is tax exempted.
You can ask for club expenses upto 2.00 L p.a. (you need to produce clud registration, club id card and receipt - Club means helath club, holiday club, other registered clubs)
You can opt for food coupons upto 2700/- p.m (tax free)
You can opt for Gift coupons upto 5000 p.m(tax free)


remaining will go into Spl,allowance which is fully taxable. Feel free to post for any doubts.

Pon

Prashant B Ingawale -  Member Since: Jul 2007
Dear Pon Sir,

Will you please enlight us what are the Income Tax Act section where you have mentioned below remarks

You can ask for 240000/- towards fuel & maintenance charges (if you own 4 wheeler) or 60,000/- p.a. for 2 wheeler.

Prashant
__________________________________________________ __________________________________
Pradeep,

Ask for 40% as basic of Rs.18L. That means 6.4 L. In Basic, you can claim as 50% of basic as HRA as Noida falls under NCR. (HRA minus 10% of your basic is tax exempted).
You can ask for 15000/- towards Medical assistance (tax exempted subject to production of bills)
You can ask for 2400/- P.a as Children Edu Allowance (if you got 2 children)
You can ask for 240000/- towards fuel & maintenance charges (if you own 4 wheeler) or 60,000/- p.a. for 2 wheeler. If you don't own any vehicle, 9600/- towards conveyance allowance is tax exempted.
You can ask for club expenses upto 2.00 L p.a. (you need to produce clud registration, club id card and receipt - Club means helath club, holiday club, other registered clubs)
You can opt for food coupons upto 2700/- p.m (tax free)
You can opt for Gift coupons upto 5000 p.m(tax free)


remaining will go into Spl,allowance which is fully taxable. Feel free to post for any doubts.

Pon

pon1965 -  Member Since: May 2009
Prashant,

Vehicles used for official purposes (conveyance) is coming under perquisites under rule 3(2) of I.T.
INCOME-TAX (THIRTEENTH AMENDMENT) RULES, 2009 - SUBSTITUTION OF RULE 3 AND INSERTION OF RULE 40F

You have to prepare the statement of expenses and signed by the immediate manager for availing tax exemption.

The limit is not indicated in the link. I am availing this limit for tax exemption purposes in our company. You should have the vehicle in your name for claiming the benefit.

Pon

Anonymous  - 
Please help me with actual break formula or how to make salary break up.




 
 
 
 





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