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Tax Saving

 
Abdul Kader
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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
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Please check your PM
 
David O'Meara
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Please keep discussion on the board so that it can benefit others too.
 
Manish Hatwalne
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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
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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.
 
Kj Reddy
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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
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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
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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
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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
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Any good books for Learning tax ?
 
Abdul Kader
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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
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Political tripe removed.
 
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