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.
- 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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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.
- 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 fish - will help you reduce tax a lot 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 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 1 permitted in a block of 2 years but family can be included).
5. Children's education allowance (if you have children - not a big factor in saving income tax though).
Let me know if you need more information.
From India, Delhi
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7If yes, then I would advise you to pick the following:
1. HRA (this is the biggest fish - will help you reduce tax a lot 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 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 1 permitted in a block of 2 years but family can be included).
5. Children's education allowance (if you have children - not a big factor in saving income tax though).
Let me know if you need more information.
From India, Delhi
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