Creating a Tax-Friendly Salary Structure: How Can We Benefit Our Employees?

Hi,

How can we make a tax-friendly salary structure for our employees?

Regards,
Anuradha

For Pune - Maharashtra Location

Basic
HRA = (Basic * 40/100) Tax-Free
Conveyance = 800 per month tax-free
Medical Reimbursement = 1250 per month tax-free
Sodexo Coupons = 1350 per month tax-free
Education Allowance = 100 per child (Maximum for 02 children tax-free)
Hostel Allowance = 200 per child (Maximum for 02 children tax-free)
Special Allowance = Taxable

HRA can be up to 50% of basic in metros.

Club allowance is non-taxable.

If the employee uses their own vehicle for official purposes, they can claim fuel and maintenance charges as tax-free. However, in lieu of this, they cannot claim conveyance allowance of Rs. 800 per month for tax exemption.

What is the meaning of Sodexo Coupons? I found Rs. 1200 per month against Sodexo coupons a few days back, but it is shown as Rs. 1350 per month. Which is correct, and how is it calculated? Kindly clarify.

For food coupons, it is Rs. 1350 (26 days * Rs. 50 for food expenses) tax exempted.

Regards,
Gokul Nathan