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
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.
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.
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.
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
-- 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