How Can I Optimize My Salary Breakup to Save More on Taxes? Seeking Advice on Benefits and Limits

Dear All,

Please suggest a suitable salary breakup for approximately 5.5 lakh per annum. My current salary breakup consists of Basic + HRA + Conveyance + others. Hence, we could save taxes for HRA and conveyance (max limit 9600.0) only. After saving (worth 1 lakh), I have to pay an amount as big as 80,000.0 or more. :( Somebody suggested petrol reimbursement and medical reimbursement. Medical reimbursement again has an upper limit of 15000.0. Is there any upper limit in petrol as well? What is Corporate attire benefit? What is the upper limit of this?

Regards,
Kirti Arora

Hi Kirti,

You can add Sodexo meal coupons worth 2400 per month. It is completely tax-exempt and does not come under fringe benefit tax. For petrol, there is no upper limit, but it's better if you can take a limit of 4000 per month. Below is the breakup you can use to save on your taxes:

- BASIC: 35% of CTC
- HRA: 50% of BASIC
- Conveyance: 800
- Telephone reimbursement: 1200 per month (you can submit your landline and mobile bill to save tax)
- Medical reimbursement: 1250 per month (tax exempt)
- Petrol: 4000 (you can save tax by submitting bills)
- Sodexo meal vouchers: 2400 per month (tax exempt)
- Training reimbursement: 30K per year (save tax by submitting bills)

I hope this information will help you.

Katayana

Hi Katayan,

Please also tell me whether it is compulsory that the car belongs to the company for getting a petrol claim. What shall be the tax liability to the company or me if we simply get $2000.0 as a meal allowance instead of Sodexo meal coupons? Frankly, I do not think that I can spend $2400 worth of meal coupons in restaurants per month.

Regards,
Kirti

Hello Sir/Madam,

I just wanted to calculate the salary breakup before the new updates of ESI, EPF, and bonus.

Basic: 25000
CTC: 28000
Designation: HR Generalist

How to design the salary of an HR professional who has a basic salary of 25000?

Thank you.