Can you tell me how I should bifercate my salary so that I can get maximum tax benefit. My Salary is 30000/- pm please me bifercation i.e. basic, D.A. Travelling Allowance. etc. and plese give me tax plannking, my LTA is 20000/- and Medical is Rs. 15000/-.
RE:Salary tax planning
by Amitabh on Jun 12, 2007 02:17 PM Permalink
Medical re-imbursement upto Rs 15000 is exempt.LTA,once in two years will be exempt if you travel to any place within India.The amount exempt will be the shortest route economy class airfare or the amount spent,whichever is less.Travelling allowance for travelling to office and back to residence is exxempt upto Rs 800 per month.Conveyance allownace to the extent used for official purposes is exempt from tax.Basic and DA are fully taxable.If you pay rent,plz also try to get a reasonable amount of HRA.
