Hi,
We already have a couple of tax saving components in our salary structure (upto 12% of basic) which includes - reimbursements for book bills, mobile bills, driver's salary, LTA and sudexo coupons. There are upper limits for claiming each. Other salary components include basic (40% of monthly gross), HRA (50% of basic), medical reimbursement (Rs. 1250 per month), conveyance (Rs. 800 per month) and special allowance (remainder of monthly gross).
Employees with higher salary are unable to take much advantage of saving tax since the choices are limited and there are upper limits for claiming each. Can we add a few more components? If yes that what can they be? Can it be done keeping the tax saving component maximum upto 12% only and keeping the overall salary structure as it is? Please advice. Thanks.
We already have a couple of tax saving components in our salary structure (upto 12% of basic) which includes - reimbursements for book bills, mobile bills, driver's salary, LTA and sudexo coupons. There are upper limits for claiming each. Other salary components include basic (40% of monthly gross), HRA (50% of basic), medical reimbursement (Rs. 1250 per month), conveyance (Rs. 800 per month) and special allowance (remainder of monthly gross).
Employees with higher salary are unable to take much advantage of saving tax since the choices are limited and there are upper limits for claiming each. Can we add a few more components? If yes that what can they be? Can it be done keeping the tax saving component maximum upto 12% only and keeping the overall salary structure as it is? Please advice. Thanks.