Understanding Taxable Limits in Your CTC: How to Navigate Allowances and Rebates in Mumbai?

Can anyone guide me regarding the income tax limits and provisions under the Income Tax Act (FY 06-07)?

What's the limit of the following components of CTC under which one can evade the tax liability (Mumbai)?

- Special Allowance
- Education Allowance
- Reimbursement of Conveyance
- Lunch Reimbursement (Coupons)
- Reimbursement of Medical
- Performance/Variable Pay

What's the amount of the above-mentioned components that attracts tax, and what are the various provisions to evade the tax or get a rebate?

Abhishek Arun

Hello Members,

I think no one has yet got any clue to help me. Now let me share with you all the information I have gathered in these days.

1. TAX SLAB (PERSONAL IT, INDIA, FY 06-07)
- TAX UPTO 100,000 NIL
- 185,000 FOR SENIOR CITIZEN NIL
- 135,000 FOR FEMALES
- 100,000 - 150,000 10%
- 150,000 - 250,000 20%
- 250,000 ONWARDS 30%

SAVINGS UP TO Rs. 100,000/- ONLY ELIGIBLE FOR DEDUCTION FROM GROSS SALARY UNDER (80C, 80CCC, 80CCD).

IN ADDITION TO 100,000, EXTRA DEDUCTIONS CAN BE AVAILED ON:
- INTEREST PAID ON HOUSING LOAN
- MEDICAL INSURANCE PREMIUM (NO LIMIT)
- EXPENDITURE ON DISABLED DEPENDENT
- MEDICAL EXPENSES ON SELF/DEPENDENT/MEMBER OF HUF
- DEDUCTION ON INTEREST ON LOANS FOR HIGHER STUDIES
- DEDUCTION FOR A PERSON WITH DISABILITY

ADDITIONAL: (Heads where one can evade tax by restructuring the salary components)
- GROSS SALARY - THE FOLLOWING
1. LTA CLAIMED WITH PROOF.
2. MEDICAL REIMBURSEMENT UP TO 15,000/-

THIS IS TO SHARE WITH YOU ALL SUCH THAT ONE CAN MANAGE THEIR SALARY WELL. COMPANIES, HENCE, SHOULD PROVIDE THE CAFETERIA APPROACH TO THEIR EMPLOYEES TO SELECT THE SALARY COMPONENTS THAT WOULD HELP THEM TO EVADE TAX.

IF I AM MISSING ANY POINTS THAT WOULD HELP IN SAVING INCOME TAX, PLEASE DO ADD ON...

REGARDS,

ABHISHEK ARUN

Hello Members,

I think no one has yet got any clue to help me. Now let me share with you all the information I have gathered in these days.

1. TAX SLAB (PERSONAL IT, INDIA, FY 06-07)
- TAX UP TO 100,000: NIL
- 185,000 FOR SENIOR CITIZEN: NIL
- 135,000 FOR FEMALES
- 100,000 - 150,000: 10%
- 150,000 - 250,000: 20%
- 250,000 ONWARDS: 30%

SAVINGS UP TO Rs 100,000/- ONLY ELIGIBLE FOR DEDUCTION FROM GROSS SALARY UNDER (80C, 80CCC, 80CCD).

IN ADDITION TO 100,000, EXTRA DEDUCTIONS CAN BE AVAILED ON:
- INTEREST PAID ON HOUSING LOAN
- MEDICAL INSURANCE PREMIUM (NO LIMIT)
- EXPENDITURE ON DISABLED DEPENDENTS
- MEDICAL EXPENSES ON SELF/DEPENDENT/MEMBER OF HUF
- DEDUCTION ON INTEREST ON LOANS FOR HIGHER STUDIES
- DEDUCTION FOR A PERSON WITH DISABILITY

ADDITIONAL: (Heads where one can evade tax by restructuring the salary components)
- GROSS SALARY - THE FOLLOWING
1. LTA CLAIMED WITH PROOF.
2. MEDICAL REIMBURSEMENT UP TO 15,000/-

THIS IS TO SHARE WITH YOU ALL SO THAT ONE CAN MANAGE THEIR SALARY WELL, AND COMPANIES HENCE SHOULD PROVIDE THE CAFETERIA APPROACH TO THEIR EMPLOYEES TO SELECT THE SALARY COMPONENTS THAT WOULD HELP THEM TO EVADE TAX.

IF I AM MISSING ANY POINTS THAT WOULD HELP IN SAVING INCOME TAX, PLEASE DO ADD ON......

REGARDS,

ABHISHEK ARUN