How Can I Maximize My Tax Savings with the Right Salary Structure?

Hi! Can anyone provide me with a salary structure where the maximum tax savings can be achieved? Thank you.
Chitra

Hi!

Thank you very much for these very useful documents. Our structure already includes Basic, HRA, Conveyance, Medicals, Updates, Education, Bonus, PF, and PT. Are there any other important components that could lead to tax savings?

Thank you,
Chitra

Hi,

If you want, you can include meal vouchers, club memberships, and petrol reimbursement. However, the company will have to pay Fringe Benefits Tax (FBT) on that. These components are tax-free for employees.

Kailash @ TopSource
www.topsource.in

Basic: 30% of CTC
HRA: 40% or 50% of basic
CCA: 30%
Conveyance: $800
Medical: $1250
Children's Allowance: $200
LTA: 10% of CTC
PF Contribution: 12%
Special Allowance: Rest of the amount
Manoranjan

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Thank you for your response, Manoranjan.

Could you please clarify what CCA stands for and what percentage of which amount is taxable? Additionally, LTA accounts for 10% of CTC; how much of this is non-taxable?

Kindly provide the structure in an Excel sheet.

Best regards,
Amrit Singh Pathania

Hi all,

I am still waiting for your reply on "What does CCA stand for, and what percentage of which amount is taxable? LTA is 10% of CTC: How much is non-taxable? Please provide an Excel sheet for gratuity calculation. Also, I think CCA means City Compensatory Allowance. What is the limit of non-taxable CCA, and can a person receive both CCA and conveyance allowance?

Is medical allowance a component of FBT, and if yes, then at what percentage? Please let me know the structure in the Excel sheet.

Regards, Amrit Singh Pathania

Hi Buddies,

My brother's salary pay is structured as follows:
- Basic salary: 10,100
- Variable Dearness Allowance: 8,019
- Productivity allowance: 3,710
- City Compensatory allowance: 300
- Special compensatory allowance: 1,215
- HRA: 3,030
- Education allowance: 350
- Conveyance allowance: 550
- Allowance Total: 27,294
- Bonus: 10,641
- Total: 37,935 per month

Now, my query is how he can get maximum tax savings. Which fields should he invest in to achieve maximum tax savings? What options are available in the market that provide maximum tax savings? If he does not invest, how much will be deducted per annum from his salary? Please calculate and let me know. Hope to hear from you soon.

Thanks, AJITHAA HASAN