Non Taxable Salary Ctc Components - CiteHR
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Siba
Manager- Hr
Ghodake
Hr Manager
+1 Other

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What are the various non taxable components opted by large IT companies apart from vehicle/petrol allowance, medical and SODEXO Coupons ?
Dear soomanighosh
There has been several discussions/threads on non-taxable components of salary; in the past.
Please use the Research" option at the top of the page to locate such threads.
Alternatively, you can also see the threads on the panel on RHS displaying "Similar Topics".
Warm regards.

Dear soomanighosh,
Following are exempted from tax
Child Education Allowance (up to Rs. 100 per child max 2 child)
Child Hostel Allowance (up to Rs. 300 per child max 2 child)
HRA exemption = minimum of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA)
"LTA is exempt to the tune of ecomony class airfare for the family to any destination in India, by the shortest route.
LTA can be claimed twice in a block of 4 calendar years. The current block is from Jan 2010 to Dec 2013"
Medical reimbursement to a maximium of 15,000/ (otherwise it will go in tax)
Club membership (save tax)
Conveyance (Rs.800 per month )
Thanks

Dear ,

I hope following info is sufficient for you.

Allowances/ reimbursementsAllowances are normally paid irrespective of the employee actually incurring them. These are fully taxable if no bills are provided. However, if the expenses are actually incurred and bills provided, they are not taxable up to a specified limit under eachTraining allowanceAn amount of up to Rs 14,000 per annum is tax-free if the employee provides relevant billsTelephone allowanceAn amount of Rs 12,000 per annum is tax free if the phone is used for official purposes and bills submittedHRAHouse Rent Allowance can be claimed if one lives in a rented premises and the rent exceeds 10 per cent of the salary. The actual HRA exempted from tax is least of the following:

The actual amount of HRA received.
40 per cent of salary. This increases toOffice Wear Allowance / Uniform AllowanceAn amount of up to Rs 18,000 per annum is tax-free if the employee provides relevant billsLunch and RefreshmentAn amount of up to Rs 15,000 per annum is tax-free

ConveyanceFor conveyance, up to Rs 800 per month is allowed as deduction without providing any billsMedical allowanceBills have to be provided; up to Rs15,000 per annum is allowed as deduction. This can be claimed for self, spouse, children, parents and siblings who are dependent on the assessee.Leave and travel allowance:Two trips in a block of four years is allowed and only travel within India can be claimed as deduction. It can be claimed for self, spouse, children, parents but only if the employee (assessee) is travelling along with them. There is no maximum limit on itEducation allowanceAn amount of up to Rs 2,400 per annum is tax-free.

B Regards ,

Shrikant Ghodake

Hi,
Please find a few comonents which are tax free.
Children Education Allowance INR 200/- p.m.
Medical Allowance INR 1250/- p.m.
Transport Allowance INR 800/- p.m.
Telephone Bills INR 2000 pm
food coupons INR 1500 pm
Helper Allowance - on actual paid
Leave Travel Allowance - Actual cost spent (It is limited to economy class of air fare or AC first class fare)
Academic Research & Professional -To the extent actual spent
Travel Allowance on Deputation - To the extent actual spent
House Rent Allowance non taxable (Actual Rent Paid or 40% of Salary(Basic +DA) (in Bangalore), Least of these two)
gift coupons INR 5000 PA
Regards,
Michael Joseph

Hi Thanks for those which we already have. How do companies give almost 30% of their salary as flexible components for reimbursables ? Any more that you are aware off..
Dear soomanighosh
What is the source of this information (30% of flexible component.....) ??
Where does it say that the 30% is fully tax-exempt ??
Do you think that other companies are foolish enough to burden their employees with taxes ??
Well, if you have a very low CTC, then its possible, but for a CTC of say, more than 15 lakhs p.a. how can 30% be tax-exempt ??
Instead of such "conjectures" and hearsay, it would be prudent if you can come out with a concrete evidence; or should have straightaway asked this; rather than making the members post their suggestions, and then saying - you already have it, or, are aware of it !!
Warm regards.

Dear All
Thanks for your efforts.
However, I am sorry to notice that the post-er of this thread already has the information, and is now looking for something else, as you can see from the latest response.
Under the circumstances, i shall again stress the need to give more information, and being very specific while posting queries, lest others' sincere efforts do not go waste.
Warm regards.

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