Can someone help me decide the CTC breakup for my salary? I am the director and promoter of a private Ltd. company in Noida. I am planning to go for a CTC of 18 LPA. Please break up this salary for maximum tax benefits.
Regards,
Pradeep
From India, New Delhi
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Regards,
Pradeep
From India, New Delhi
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Pradeep,
Ask for 40% as basic of Rs. 18L. That means 6.4 L. In Basic, you can claim 50% of basic as HRA as Noida falls under NCR. (HRA minus 10% of your basic is tax exempted). You can ask for ₹15,000 towards Medical assistance (tax exempted subject to production of bills). You can ask for ₹2,400 p.a. as Children Education Allowance (if you have 2 children). You can ask for ₹240,000 towards fuel & maintenance charges (if you own a four-wheeler) or ₹60,000 p.a. for a two-wheeler. If you don't own any vehicle, ₹9,600 towards conveyance allowance is tax exempted.
You can ask for club expenses up to ₹2.00 L p.a. (you need to produce club registration, club ID card, and receipt - Club means health club, holiday club, other registered clubs). You can opt for food coupons up to ₹2,700 p.m. (tax-free). You can opt for Gift coupons up to ₹5,000 p.m. (tax-free). The remaining amount will go into a Special allowance which is fully taxable. Feel free to post for any doubts.
Regards,
Pon
From India, Lucknow
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616Ask for 40% as basic of Rs. 18L. That means 6.4 L. In Basic, you can claim 50% of basic as HRA as Noida falls under NCR. (HRA minus 10% of your basic is tax exempted). You can ask for ₹15,000 towards Medical assistance (tax exempted subject to production of bills). You can ask for ₹2,400 p.a. as Children Education Allowance (if you have 2 children). You can ask for ₹240,000 towards fuel & maintenance charges (if you own a four-wheeler) or ₹60,000 p.a. for a two-wheeler. If you don't own any vehicle, ₹9,600 towards conveyance allowance is tax exempted.
You can ask for club expenses up to ₹2.00 L p.a. (you need to produce club registration, club ID card, and receipt - Club means health club, holiday club, other registered clubs). You can opt for food coupons up to ₹2,700 p.m. (tax-free). You can opt for Gift coupons up to ₹5,000 p.m. (tax-free). The remaining amount will go into a Special allowance which is fully taxable. Feel free to post for any doubts.
Regards,
Pon
From India, Lucknow
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Income Tax Act Sections for Tax Benefits
Could you please enlighten us on the sections of the Income Tax Act mentioned in the remarks below:
You can ask for INR 240,000 towards fuel & maintenance charges (if you own a four-wheeler) or INR 60,000 per annum for a two-wheeler.
Prashant
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Pradeep,
Ask for 40% of Rs. 18L as the basic amount, which amounts to 6.4 L. In the basic amount, you can claim 50% as HRA, as Noida falls under NCR. (HRA minus 10% of your basic is tax-exempt).
You can ask for INR 15,000 towards medical assistance (tax-exempted subject to the production of bills).
You can ask for INR 2,400 per annum as Children Edu Allowance (if you have 2 children).
You can ask for INR 240,000 towards fuel & maintenance charges (if you own a four-wheeler) or INR 60,000 per annum for a two-wheeler. If you don't own any vehicle, INR 9,600 towards conveyance allowance is tax-exempt.
You can ask for club expenses up to 2.00 L per annum (you need to produce club registration, club ID card, and receipt - Club means health club, holiday club, other registered clubs).
You can opt for food coupons up to INR 2,700 per month (tax-free).
You can opt for gift coupons up to INR 5,000 per month (tax-free).
The remaining amount will go into Special Allowance, which is fully taxable. Feel free to ask if you have any doubts.
Regards,
Pon
From India, Pune
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Could you please enlighten us on the sections of the Income Tax Act mentioned in the remarks below:
You can ask for INR 240,000 towards fuel & maintenance charges (if you own a four-wheeler) or INR 60,000 per annum for a two-wheeler.
Prashant
---
Pradeep,
Ask for 40% of Rs. 18L as the basic amount, which amounts to 6.4 L. In the basic amount, you can claim 50% as HRA, as Noida falls under NCR. (HRA minus 10% of your basic is tax-exempt).
You can ask for INR 15,000 towards medical assistance (tax-exempted subject to the production of bills).
You can ask for INR 2,400 per annum as Children Edu Allowance (if you have 2 children).
You can ask for INR 240,000 towards fuel & maintenance charges (if you own a four-wheeler) or INR 60,000 per annum for a two-wheeler. If you don't own any vehicle, INR 9,600 towards conveyance allowance is tax-exempt.
You can ask for club expenses up to 2.00 L per annum (you need to produce club registration, club ID card, and receipt - Club means health club, holiday club, other registered clubs).
You can opt for food coupons up to INR 2,700 per month (tax-free).
You can opt for gift coupons up to INR 5,000 per month (tax-free).
The remaining amount will go into Special Allowance, which is fully taxable. Feel free to ask if you have any doubts.
Regards,
Pon
From India, Pune
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