Understanding My Salary Breakdown and Tax Deductions: What Will I Actually Take Home?

Hi, I am a fresher and I received my offer letter two days ago. The annual compensations were detailed as follows: basic - $150,000, house rent allowance - $75,000, provident fund - $18,000, leave travel allowance - $30,000, medical allowance - $15,000, conveyance allowance - $9,600, special allowance - $202,400, totaling to $500,000 in total pay. Deductions include provident fund - $18,000 and professional tax - $2,500, resulting in a net take-home pay of $461,500. The net take-home pay, excluding medical and travel allowance, is $416,500.

Could you please explain the breakdown of these components and inform me of the amount I will receive after tax deductions? Also, are there any special tax savings available for women?

Hi,

Attached is your tax working as you mentioned, the salary breakup. Up to 190,000, there is no tax. From 190,000 to 500,000, the tax percentage is 10%.

In your case, for saving tax, you can take exemption on the following documents:
- Rent receipt
- LTA claim
- Medical reimbursement claim
- Investment in 80C up to 82,000/- (LIC/PPF/NSC/MF/BONDS/EDU LOAN, etc.)
- In 80D, you can submit medical policy up to 15,000/- and another 15,000 for your parents.
- You can also invest in infrastructure bond (section 80CCF).

Whatever you invest as per the above limit, your tax will be saved by 10%.

Thanks & Regards