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.
From India
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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.
From India
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Also to add to this there are two deductions shown under Provident Fund and Gratuity. I believe Gratutiy cannot be shown as deductions?
From India
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From India
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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.
From India, Delhi
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71. **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.
From India, Delhi
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SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls