How to report salary

Hi,

Your salary structure should have the following components to maximise on the tax savingss:

Salary - xx

HRA - 50% of xx (Since you are living in a Metro City). It can be around ~70k so that you can claim the entire 72k rent that you pay.

LTA

Tution allowance

Car/Petrol Allowance

Mobile Reimbursement, etc

Further the Company can contribute to NPS to the extent of 10% of your basic salary and that will be totally exempt

from tax.

You can call and discuss with me for a more detailed discussion.

Regards,

Nikhil.

Hi,

You can avail following allownaces subject to your company policy:

1. HRA

2. Meal coupons

3. LTA

4. Uniform allowance

5. Child education allowance

6. Reimbursement of fuel expenses

Hi

HRA deduction shall be calculated on the least of the following amounts:

a. Actual HRA received;

b. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or

c. Actual rent paid less 10% of basic salary + DA

Plan your HRA from company accordingly.

Apart from HRA, you have Rs. 40000 standard deduction allowable.

Further, you may claim allowances in respect of uniform, vehicle maintenance, meals, skill development, child maintenance, etc.

You may invest in mediclaim policies for you, your family including parents to claim deduction under 80D.

Dear Sir,

Department will allow only those claims which will appear in Form 16. You can do the breakup as per permissible limits but it will be subject to litigation. HRA deduction is valid and can be claimed. Section 80 C deructions are allowed though they are not appearing in Form 16 subject to actual proofs of investments.

Thanks

Dear Sir,

- HRA is taxable in your hands and not rent paid and it will never be fully exempted unless rent paid is too high. You can structure it as below.

- Basic Salary- 40%-50% of CTC

- HRA - 40%-50% of basic salary

- LTA - One month basic

- Special allowance

Thanks

Hi,

Though I had given an estimate to you earlier, I still stand with what I said. You can keep your Basic+ DA at ~1.4 lakhs and HRA at 70k. You may not be able to save the entire HRA based on the actual rent that you are paying.

You can connect with me for further clarifications.

Regards,

Nikhil.

Dear Sir,

Hope you are doing well !

You can avail followings allowances subject to your company policy:

1) HRA: The deduction available is the least of the following amounts:

a. Actual HRA received;

b. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or

c. Actual rent paid less 10% of basic salary + DA

2) Uniform allowance - Lower of the following is exempted-

(i) Allowance received

(ii) Amount utilised for the conveyance

3) Leave Travel Allowance- It is available for travel allowance given by the employer to the employee or his family. The exemption is claimed for two journeys in a block of four years. The current or on-going block year is the 9th block year. The 4 years in this block are the years 2018, 2019, 2020 and 2021

4) Standard Deduction- Rs. 40,000 or the amount of salary, whichever is lower

5) Fuel & Maintenance reimbursement

6) Children Education Allowance-Up to Rs. 100 per month per child up to a maximum of 2 children is exempt

For Individual - Salaried employee

7) Meal Coupons

Thanks & Regards,

Payal Chhajed