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Bookmark "Tax Saving " Watch "Tax Saving " New topic
Author

Tax Saving

Abdul Kader
Ranch Hand

Joined: Apr 11, 2007
Posts: 115
I got a offer from a company which is in INDIA , i got the flexible to arrange my allowances . please find the allowances which they offer and can you please help me how to split that so that we can get full tax benefit ?

Leave travel allowance
Food coupons
Medical reimbursement
Medical insurance for dependant parents
Telephone reimbursement
Vehicle expense reimbursement (2 wheelers)
Vehicle expense reimbursement (4 wheelers)
Vehicle lease charges (4 wheelers)
Discretionary variable pay
Personal pay

Total Amount is : 28,600
Rish Jain
Ranch Hand

Joined: Mar 22, 2006
Posts: 85
Please check your PM
David O'Meara
Rancher

Joined: Mar 06, 2001
Posts: 13459

Please keep discussion on the board so that it can benefit others too.
Manish Hatwalne
Ranch Hand

Joined: Sep 22, 2001
Posts: 2578

It would be best to ask HR of the company to give you the suggestions. Usually reimbursements are tax-free. As far as I know, the medical reimbursement is limited to 18000 p.a. in India. HR person (or tax consultant) will be the best person to suggest you the beak-up.

rgds,
- Manish
Thamizh Velan
Ranch Hand

Joined: Jul 01, 2008
Posts: 38
Leave Travel Allowance - is permissible on two travel journeys in a block of 4 calendar years with minimum of 3 days leave taken. I personally feel that LTA is much of a nettlesome process and wouldn't opt that.
Food coupons - I assume you live in a city. Most restaurants, super markets (only for eatable items), medical stores accept food coupons. It is one good way to save tax. More about LTA policy is here
Medical reimbursement - You can apply for 15000 Rs per annum showing medical bills.
Medical insurance for dependent parents - Hope you would have insurance for dependent parents. So, you can opt for this too. If you don't have a medical insurance, I would strongly recommend getting one right away.
Telephone reimbursement - Yes of course if you have telephone connections on your name.
Vehicle expense reimbursement (2 wheelers) - Yes
Vehicle expense reimbursement (4 wheelers)
Vehicle lease charges (4 wheelers) - I think the lease charges will be deducted from your salary. Not sure
For Discretionary variable pay and Personal pay, You'll have to pay tax with applicable 80(c), 80(d) rules.

BTW, having so many reimbursable components will greatly help reducing tax. Your pay structure is nice. Generally in India, only people above a certain grade (In my company Managers) get this kind of pay structure.


தமிழ் - My mother tongue!
Kj Reddy
Ranch Hand

Joined: Sep 20, 2003
Posts: 1704
In my view you should give Medical reimbursement -> Rs 15,000 per annum, Medical Insurance you better to have your own instead of having from company, Telephone reimbursement based on your expected monthly phone bill. For remaining things you better to refer company policy and your needs.
Abdul Kader
Ranch Hand

Joined: Apr 11, 2007
Posts: 115
Thanks a lot for all your suggestions,i like to know what all the Bills we have to submit to claim for the following allowances

Medical insurance for dependant parents
---How this will use full ??

Telephone reimbursement
-- Mobile Bills & Internet usage bills will be eligible ??

Vehicle expense reimbursement (2 wheelers)
-- Petrol bills ???. how much we can opt for this ???

Discretionary variable pay
-- what this mean ?? is that variable pay kind of stuff ??

Personal pay

-- what this segment is all about ?? any tax saving here ?? any bills will help me ???
Thamizh Velan
Ranch Hand

Joined: Jul 01, 2008
Posts: 38
Originally posted by Abdul Kader:

Medical insurance for dependant parents
---How this will use full ??
You'll probably shell out some 15K Rupees as a premium for health insurance (in most cases). You'll give the bills for tax exemption. I think only 15+ is the limit for this.

Telephone reimbursement
-- Mobile Bills & Internet usage bills will be eligible ??
Mobile bills - yes. Not sure of internet.

Vehicle expense reimbursement (2 wheelers)
-- Petrol bills ???. how much we can opt for this ???
Yes. Talk to your HR / Payroll dept

Discretionary variable pay
-- what this mean ?? is that variable pay kind of stuff ??
Talk to your HR / Payroll dept

Personal pay

-- what this segment is all about ?? any tax saving here ?? any bills will help me ???

This part is completely taxable. Talk to your HR / Payroll dept to know more details. At least, pay a minimal tax for the sake of the country lol
Abdul Kader
Ranch Hand

Joined: Apr 11, 2007
Posts: 115
one clarification what is the difference between the Discretionary variable pay & Variable pay....

Mostly variable pay will change based on the company and the individual performance right ???
Abdul Kader
Ranch Hand

Joined: Apr 11, 2007
Posts: 115
Any good books for Learning tax ?
Abdul Kader
Ranch Hand

Joined: Apr 11, 2007
Posts: 115
i am getting 9 Lacks p/a from this company and i got lot of split ups .. i like to know in what all the ways i can reduce the income tax slab.

as i know 1.50 lacks will exception for all and i also save 1 lacks for investment....

is there any other to reduce the Tax ???
David O'Meara
Rancher

Joined: Mar 06, 2001
Posts: 13459

Political tripe removed.
 
Don't get me started about those stupid light bulbs.
 
subject: Tax Saving