Understanding Salary Breakup, Tax Deductions, and TDS Calculation for 2007 - 2008

Friends,

I get a salary of 2.4 lakhs per annum, and the TDS deducted per month is 1700. My salary has been hiked to 3 lakhs per annum. Can anyone provide me with a salary breakup with the least TDS deduction? I would also like to know the non-taxable part of the salary.

Email: nadim_akthar@rediffmail.com

Thank you.

Hello,

This depends upon your salary structure. The deductions you can get are:
- Conveyance allowance: 800*12 = 9600 tax-free
- Medical reimbursement: 1250*12 = 15000 tax-free
- HRA tax-free if residing in a rented house = 50% of basic
- Contribution to P.F
- Any investment up to 1,00,000 Rs tax-free

After deducting these amounts from your salary, the calculation of tax will be done, and TDS will be calculated accordingly. I will inform you of the rest once I know your salary breakup.

Regards,
Vijeta

Hello Vijeta,

My salary breakup consists of the following components: Basic, Conveyance, HRA, Medical Reimbursement, PF, Gratuity, Bonus, and TDS. I do not make any investments. Please add up all the above to 25 thousand per month to ensure the least TDS payment.

Hello,

This depends upon your salary structure. The deductions you can get are as follows:
- Conveyance allowance: 800*12 = 9600 tax-free
- Medical reimbursement: 1250*12 = 15000 tax-free
- HRA: Tax-free if residing in a rented house, 50% of basic
- Contribution to P.F.
- Any investment up to 1,00,000 INR is tax-free.

After deducting these amounts from your salary, the calculation of tax will be done, and TDS will be calculated accordingly. I will provide more information once I know your salary breakup.

Regards,
Vijeta

My salary breakup consists of: Basic, conveyance, HRA, medical reimbursement, PF, gratuity, bonus, TDS. Also, I make no investments. Please add up all the above to 25 thousand per month to minimize TDS payment.

Hi,

You can work out this way:

- Basic: 12500
- HRA: 5000
- Mediclaim: 1500
- Conveyance: 1000
- PF: 1500
- Gratuity: 550 (approx)

You can also ask for meal vouchers, which are exempted from tax up to Rs. 1500 per month.

Regards,
Radha