My age is 59 years old and working as an associate professor in a college. I get a consolidated pay of Rs 1,00,000.
How can I reduce my income tax. Under which section should I request the management to pay my consolidate salary inorder to reduce my income tax. Some say that my designation should be changed from Associate Professor to Consultant. Please advice.
From India
How can I reduce my income tax. Under which section should I request the management to pay my consolidate salary inorder to reduce my income tax. Some say that my designation should be changed from Associate Professor to Consultant. Please advice.
From India
By changing the designation from Asst Associate Professor to Consultant the tax liability will not change. A consultant is one who is consulted for some matters. He will not be available in the office/ College through out the day and week or month. He will not follow the office timing nor the HR policies relating to Leaves,taking approval from the HoD for leave, dress code etc will be applicable to him. I understand that you attend the sessions every day, do evaluation of papers of the students, remain in the college till the sessions end from Monday to Friday from 1st of the Month till the last day. Please go through a case on the same subject attached.
Inclusion of certain components like HRA, conveyance allowance etc as part of the salary may reduce your tax burden. But these are subject to other conditions, like, if you are residing in owned house or if your spouse is getting HRA, then you will not get the benefit of HRA. A reasonable amount can be put as reimbursements, like Fuel reimbursement, telephone reimbursements, reimbursement of books and periodicals for upskilling etc. Normally, allowances will be part of salary and thus taxable, but reimbursements will be excluded from salary head. Similarly, you can also contribute to EPF.
From India, Kannur
4249Inclusion of certain components like HRA, conveyance allowance etc as part of the salary may reduce your tax burden. But these are subject to other conditions, like, if you are residing in owned house or if your spouse is getting HRA, then you will not get the benefit of HRA. A reasonable amount can be put as reimbursements, like Fuel reimbursement, telephone reimbursements, reimbursement of books and periodicals for upskilling etc. Normally, allowances will be part of salary and thus taxable, but reimbursements will be excluded from salary head. Similarly, you can also contribute to EPF.
From India, Kannur
Hi
If you are in receipt of consolidated salary then your salary is subjected to TDS 10% only. What else more you are expecting?
Probably you may check with your college regarding the feasibility of reducing your consolidated salary to 50,000/- and remaining you may request in the form of voucher payment to be adjusted against some different heads for accounting purpose. But unless otherwise some benefit is there for college Management they might not consider. Also cash transactions is always a risk for the college Management.
From India, Madras
If you are in receipt of consolidated salary then your salary is subjected to TDS 10% only. What else more you are expecting?
Probably you may check with your college regarding the feasibility of reducing your consolidated salary to 50,000/- and remaining you may request in the form of voucher payment to be adjusted against some different heads for accounting purpose. But unless otherwise some benefit is there for college Management they might not consider. Also cash transactions is always a risk for the college Management.
From India, Madras
in order to save income tax, I don't think that it is advisable to accept salary in cash. The college, especially private colleges unaided by government/ UGC, will have unaccounted funds from which they can pay remuneration in cash. But if you accept cash, your salary for all purposes including computation of gratuity will become less to the extent of accounted money. Even when you go for a loan from a bank, what they consider as remuneration is the amount reflected in your bank account. In such scenarios, it is always fine if you have a reasonable salary as reflected in the IT returns. Again, the risk of getting remuneration in cash is very high.
From India, Kannur
From India, Kannur
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9 ways to reduce tax burden.doc