Dear All Sinors,
With due respect I would like to urge you all to please advise me the Best Sallary Break-up of Rs.4,20,000 Per Annum, for Maximum Tax saving.
FYI.. Right now I m single and having absolutely NO Savings at this point of time due to some Family Financial Crises.
Looking forward for your kind help on TOP TOP PRIORITY.
With Warm Regards,
Neeraj
From India, Meerut
With due respect I would like to urge you all to please advise me the Best Sallary Break-up of Rs.4,20,000 Per Annum, for Maximum Tax saving.
FYI.. Right now I m single and having absolutely NO Savings at this point of time due to some Family Financial Crises.
Looking forward for your kind help on TOP TOP PRIORITY.
With Warm Regards,
Neeraj
From India, Meerut
Hi Neeraj,
You can invest in Pf upto 70000 PA you will get tax rebate under section 80 C for the same and 9.5 % interest PA
Rest 30000 you can make a LIC or invest in mutual fund.
You can also invest in infrastructure bonds and get tax rebate for rs. 20000 amount.
If you have a educational loan you can get rebate on interest paid.
Sam with houseing loan interest paid. Principal is included in 80 C
15000 you will get medical reimbursement benefit, 20000 if your parents are senior citizens.
Hope this helps.
All the best!!!
From India, Pune
43You can invest in Pf upto 70000 PA you will get tax rebate under section 80 C for the same and 9.5 % interest PA
Rest 30000 you can make a LIC or invest in mutual fund.
You can also invest in infrastructure bonds and get tax rebate for rs. 20000 amount.
If you have a educational loan you can get rebate on interest paid.
Sam with houseing loan interest paid. Principal is included in 80 C
15000 you will get medical reimbursement benefit, 20000 if your parents are senior citizens.
Hope this helps.
All the best!!!
From India, Pune
Dear Sir,
Many Thanks for your kind reply. And I would love to do this for Next Year to save maximum tax.
But as per the currect situation - I don't have any Cash in my hand for Investment, as right now my Family Financial Posisition is not good.
Therefore I request you again, If possible right now please advise me the Best Possible Sallary Structure / Break-up on which I would have a discussion with my MD and be able to convince him for a very very minimum TDS.
Hope you can understand and help me out on TOP TOP PRIORITY.
With Warm Regards,
Neeraj
From India, Meerut
Many Thanks for your kind reply. And I would love to do this for Next Year to save maximum tax.
But as per the currect situation - I don't have any Cash in my hand for Investment, as right now my Family Financial Posisition is not good.
Therefore I request you again, If possible right now please advise me the Best Possible Sallary Structure / Break-up on which I would have a discussion with my MD and be able to convince him for a very very minimum TDS.
Hope you can understand and help me out on TOP TOP PRIORITY.
With Warm Regards,
Neeraj
From India, Meerut
1. Have basic salary as large as possible, so that your employee will get more HRA exemption.
2. Have a component called LTA (Leave Travel Allowance) in the salary. Its limit is 36,000 per annum. An individual can claim this exemption two times in a 4 year bracket.
3. Have conveyance allownace, which is tax free upto the limit of 9,600 per annum.
4. Have Medical allowance, which is tax free upto the limit of 15,000 per annum.
Basic - 40,000
Conveyance - 800
HRA - 20000
Children Education - 1500
Medical - 1250
LTA - 3500
Allowance - 12084
PF (Employer) - 4200
Adding to 83334 a month (10,00,008 a year); tax comes to 7500/- a month (with no savings taken into consideration)
Hope this helps.
From India, Pune
2. Have a component called LTA (Leave Travel Allowance) in the salary. Its limit is 36,000 per annum. An individual can claim this exemption two times in a 4 year bracket.
3. Have conveyance allownace, which is tax free upto the limit of 9,600 per annum.
4. Have Medical allowance, which is tax free upto the limit of 15,000 per annum.
Basic - 40,000
Conveyance - 800
HRA - 20000
Children Education - 1500
Medical - 1250
LTA - 3500
Allowance - 12084
PF (Employer) - 4200
Adding to 83334 a month (10,00,008 a year); tax comes to 7500/- a month (with no savings taken into consideration)
Hope this helps.
From India, Pune
Dear Sir,
Many Thanks for your kind information.
But Please note that followings...
1. Company is not deducting the PF from my Salary because as per there rules they can only deduct the PF if my earlier company were also deducting the same from my salary (which I left 11 months back).
2. I dont have my Personal PF A/C rigth now.
3. I m single so I have NO Childrens.
4. My Salary is 35000 Per Month (420000 Per Year).
Therefore I again request you to please advise me the Best Salary Break-up on the basis of above information. This will help me a lot.
Many Thanks in Advance.
With Warm Regards,
Neeraj
From India, Meerut
Many Thanks for your kind information.
But Please note that followings...
1. Company is not deducting the PF from my Salary because as per there rules they can only deduct the PF if my earlier company were also deducting the same from my salary (which I left 11 months back).
2. I dont have my Personal PF A/C rigth now.
3. I m single so I have NO Childrens.
4. My Salary is 35000 Per Month (420000 Per Year).
Therefore I again request you to please advise me the Best Salary Break-up on the basis of above information. This will help me a lot.
Many Thanks in Advance.
With Warm Regards,
Neeraj
From India, Meerut
I am sure your company has a pre determined break up so first find out about that and then we can discuss the same.
How long have you worked in this company.
You will not be eligible for tax in this year if you have been unemployed for last 11 months hence dont worry.
In the next financial year make the investments that I have mentioned above.
You can always open a PPF account if not EPF, anyways if other employees in the company have PF in your company please insist on one for you too, it a good saving head and employers contribute to it too.
From India, Pune
How long have you worked in this company.
You will not be eligible for tax in this year if you have been unemployed for last 11 months hence dont worry.
In the next financial year make the investments that I have mentioned above.
You can always open a PPF account if not EPF, anyways if other employees in the company have PF in your company please insist on one for you too, it a good saving head and employers contribute to it too.
From India, Pune
Dear Sir,
Regarding my currect Salary Break-up : I will ask my HR to provide me the same, shall keep you posted.
Regarding my exact joining date : I joined this company on Monday 29th-March-2010, and at that time company gave me salary of 3 days (29, 30 & 31th of March-2010).
Still you feel that I m not eligible for Tax for this Financial year, Please advice.
With Warm Regards,
Neeraj
From India, Meerut
Regarding my currect Salary Break-up : I will ask my HR to provide me the same, shall keep you posted.
Regarding my exact joining date : I joined this company on Monday 29th-March-2010, and at that time company gave me salary of 3 days (29, 30 & 31th of March-2010).
Still you feel that I m not eligible for Tax for this Financial year, Please advice.
With Warm Regards,
Neeraj
From India, Meerut
You have worked for a year, and you dont know your salary break up? surprising!!!
So has the company deducted your TDS?
And the HR never asked you to submit a tax declaration - surprising again!!!
Anyways, I guess they should have deducted your TDS as you are under tax bracket. Without investment you cannot save tax in nect 2 months.
Suggest you can submit House Rent bills will help you save tds in coming 2 months (people do submit fake bill most of the time, not advising you to do the same, but is an option)
And make investment for next financial year.
From India, Pune
So has the company deducted your TDS?
And the HR never asked you to submit a tax declaration - surprising again!!!
Anyways, I guess they should have deducted your TDS as you are under tax bracket. Without investment you cannot save tax in nect 2 months.
Suggest you can submit House Rent bills will help you save tds in coming 2 months (people do submit fake bill most of the time, not advising you to do the same, but is an option)
And make investment for next financial year.
From India, Pune
I understand your views sir.
But I have many friends working in similar export field who have salaries like approx 1 lakhs per month and they dont have savings, or have minimum savings but sill they are paying tax like 1000~2000 max per yr.
Its all because of an excellent C.A. of there company who designed the Salary Stracture in such a way.
I feel, they are Lucky....
Many Thanks once again for sharing wonderful knowledge.
With Warm Regards.
Neeraj
From India, Meerut
But I have many friends working in similar export field who have salaries like approx 1 lakhs per month and they dont have savings, or have minimum savings but sill they are paying tax like 1000~2000 max per yr.
Its all because of an excellent C.A. of there company who designed the Salary Stracture in such a way.
I feel, they are Lucky....
Many Thanks once again for sharing wonderful knowledge.
With Warm Regards.
Neeraj
From India, Meerut
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