Income Tax filing in Chennai | Kanakkupillai

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10 salary components Reduce TAX Burden
Kanakkupillai

• www.kanakkupillai.com

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Salary Exempt from TAX

• Your salary structure consists of several
  components which can help you reduce your tax
  burden. 
• Here are 10 components that can be used by an
  employee to minimize their tax burden and plan
  their salary structure accordingly. 

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1. Employees' Provident Fund (EPF) 

• As per the EPF Act, 12 percent of an employee's
  basic salary and dearness allowance has to be
  invested in EPF and the employer needs to invest
  an equal sum.
• The contribution deducted from the employee's
  account is exempted from tax up to Rs 1.5 lakh. 

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2. Leave Travel Allowance (LTA) 

• An employer provides LTA to employees to help
  them meet travel expenses incurred for travel
  with family to any place in India. 
• This component can be availed by an employee by
  submitting travel bills/tickets to his employer.
  "You can avail this benefit in respect of two
  journeys performed in a block of four calendar
  years. 

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3. House Rent Allowance (HRA) 

• This component of salary helps take care of rent
  paid by an employee for the premises in which he
  lives. 
• The lowest of the following amounts will be
  tax-exempt  Actual
• HRA received
• Rent paid in excess of 10 percent of salary plus
  dearness allowance
• 50 percent of salary plus dearness allowance in
  case of a house located in metro cities (Mumbai,
  Kolkata, Delhi or Chennai.

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4. Food coupons

• Food allowance can be given by the employer
  through the provision of food at working hours or
  through pre-paid food vouchers/coupons. For
  instance, vouchers (not transferable) are
  tax-exempt to the extent of Rs 50 per meal. 

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5. Car maintenance allowance

• If the car is owned/leased by the employer, the
  employee using that car will pay tax
• on a perquisite of Rs 2,700 per month (car with
  engine capacity up to 1,600 cc) or
• Rs 3,300 per month (car with engine capacity more
  than 1,600cc) in respect of the aggregate of the
  actual lease rent, driver's salary, maintenance
  expenses and fuel expenses borne by the
  employer. 

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6. Children education allowance

• An education allowance of Rs 100 per month or Rs
  1,200 per annum child paid to an employee by an
  employer is allowed as deduction from taxable
  income to the employee.
• This deduction is granted up to a maximum of 2
  children for the employee. Along with this, you
  can also claim deductions for tuition fees paid
  for your children under section 80C of the income
  tax Act. 

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7. Hostel expenditure allowance

• Hostel expenditure allowance of Rs 300 per month
  or Rs 3,600 per annum per child paid to an
  employee is also allowed as a deduction from
  taxable income towards meeting hostel expenditure
  for the child. This deduction is granted up to a
  maximum of 2 children for the employee. 

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8. Phone bill reimbursement

• Expenses on telephones including mobile phones
  incurred by the employer on behalf of the
  employee are not taxable. The law does not
  prescribe any limit, but the expenses should be
  reasonable considering the salary/ grade of the
  employee .

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9. Uniform allowance 

• This covers allowance granted by the employer to
  the employee to meet the cost of purchase and/or
  maintenance of uniform worn during the
  performance of the duties of employment. 
• Cost actually spent by the taxpayer in purchase
  and/or maintenance of official uniform worn is
  allowed as an exemption, thereby any savings from
  the amount received would be liable to tax under
  the provisions of income tax laws.

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10. Gift voucher

• The value of a gift, or voucher, or token
  provided by an employer, the aggregate value of
  which does not exceed Rs 5,000 annually, is
  tax-free in the hands of an employee. 

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IT Filing Consultants in Chennai

• The above mentioned components facilitate saving
  for an employee by providing tax-exempt ways of
  meeting the cost of accommodation, meals,
  telephone etc.
• Want to File your IT in Chennai? Get a way in
  such a way that you reduce your tax outgo as much
  as possible. When? Where? Why? For all these One
  step Solution is Kanakkupillai .

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Income Tax filing in Chennai

• Consult the best Income tax filing in Chennai
  form advisors of Kanakkupillai.  Get your
  procedures done simply by a call _at_ 7305345345 or
  direct visit from Kanakkupillai executive -
  certified tax agents in Chennai. As Taxation
  Online has become the most tedious process
  now-a-days, your one step solution will be
  Kanakkupillai.

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Contact Us

• CHENNAI OFFICE
• No 13/22 2nd floor, Yatra, TNGO Colony, West
  Karikalan street, Adambakkam, Chennai 88
• Phone [phone]
• Email support_at_kanakkupillai.com
• https//www.kanakkupillai.com/

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