How Can I Optimize My New Salary Structure to Minimize Income Tax?

Hi all, I have received an offer from a new employer. The salary structure is a bit different from my previous company, as outlined below. This falls under the flexi basket. I would like to know what I should opt for in order to minimize income tax on my income.

Components of the Salary Structure

- House Rent Allowance (HRA)
- Meal Allowance
- Domiciliary Medical Allowance
- Company Leased Car
- Fuel (Personal Car)
- LTA
- Children Education Allowance
- Supplementary Allowance

Any insights would be appreciated. Thank you.

Also, to add to this, there are two deductions shown under Provident Fund and Gratuity. I believe Gratuity cannot be shown as a deduction.

If I understand your question correctly, you want to pick up some allowances from this flexible basket to help reduce your income tax. If yes, then I would advise you to pick the following:

1. **HRA**: This is the biggest factor and will help you reduce tax significantly if you stay in a rented house.

2. **Meal Allowance**: Up to 3000 INR per month is tax-free if you receive meal coupons like Sodexo or Ticket Restaurant. You can even use them for buying groceries and at restaurants outside the office.

3. **Domiciliary Medical Allowance**: Up to 15000 INR per year is tax-free if you submit chemist/doctor bills.

4. **LTA**: This amount is tax-free if you submit the bills for your travel. Only one claim is permitted in a block of two years, but family can be included.

5. **Children's Education Allowance**: If you have children, this is available, though it is not a significant factor in saving income tax.

Let me know if you need more information.