How Can We Restructure Salaries to Offer Tax-Friendly Benefits in a Small Software Company?

b4shravanth

My new engineer draws a salary of 167,000/-. He needs to restructure his salary to avoid taxes. His last company offered him petrol allowances, food coupons, and more. Can anyone suggest if we can implement similar benefits in our small software company in Bangalore? Please guide me on how to structure such a salary bifurcation.

srishreesree

The amount your new engineer is drawing is not taxable. Tax is exempted till Rs. 2,20,000. You can follow a normal break-up. No need to add new allowances.

Regards,
Srilakshmi Korukonda

Ankita1001

If your engineer earns 167,000 annually, the entire amount is tax-exempt, so there is no need to allocate the amount into different allowances. If this is not the case, please let us know.

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