How to restrict income-tax liability on salary ?
Querist :
Anonymous
(Querist) 21 January 2012
This query is : Resolved
One of my relations has been offered a job of an Administrative Professional with a total annual CTC above Rs.20 lakhs with an understanding that the CTC components can be mutually worked out.
I seek help from experts for negotiating the best possible CTC components which would limit the income-tax liability to the barest minimum. Kindly guide by listing out each component.Thanks in advance.
prabhakar singh
(Expert) 21 January 2012
For that you need to cough out fees to some professional.
Querist :
Anonymous
(Querist) 21 January 2012
If you have no expertise in this field, perhaps it would have been wise for you to control your temptation for earning easy points please.
Sankaranarayanan
(Expert) 21 January 2012
Sure ur volume of slab is exceeding IT. So only way to invest in tax saving bond ans sscheme. If you come to this club and seek sugesstion , all of here almost senior and expericed , so if any one given their ponit , sure it helful for u.
Sanjeev
(Expert) 21 January 2012
The salary structure can be made in such a way to make best use of exemptions though the salary is very high so most benefit could be obtained if he also takes a housing loan to save on housing loan Interest and principal. The people in suxh salary brackets need always to be invested in a new property so they have a housing loan on their head.
But as I understand the real question is not about the salary but the structure that need to be made of the compensation to save utmost tax like Basic/DA/HRA/Medical etc.
Basic and DA are the taxable parts with no exemption.
Medical reimbursement upto Rs 15K is exempt if this is by way of reimbursements so the employee submits bills. So the mediacal can be made a component thus making Rs 15,000 not taxable.
HRA component can be planned in such a way that this gives maximum benefit
House Rent Allowance (or HRA): Paid to meet expenses of renting a house. The least of the following is exempt from tax. If the employee is on a rented accomodation this could be planned basis the actual rent he pays.
Actual HRA received
50% of salary (basic + DA) if residing in a metropolitan city, or else 40%
The amount by which rent exceeds 1/10th of salary (basic + DA)
You my get a better response if you post this query on caclubindia.com as that site is being used by ca students and CA's who would be in actual touch with taxation.
Raj Kumar Makkad
(Expert) 21 January 2012
Why this query should not be resolved by an experienced professional like C.A.
It is not good on the part of author to behave with senior experts like Prabhakar singh and still expect replies over his query.
Sanjeev! Why are you wasting your time because author is having more 'expertise' then you. Leave the reply upon him.
Advocate. Arunagiri
(Expert) 21 January 2012
I record my objections on this anonymous.
How can you pass such remark on a senior expert Mr.Singh. Nothing wrong in his opinion.
you have every right to accept his views are not.
Querist :
Anonymous
(Querist) 22 January 2012
Thank u to all for their general comments and to Shri Sanjeev ji for his valuable opinion.
V R SHROFF
(Expert) 22 January 2012
HE WANT TO FOOL THE GOVERNMENT, TO FIND LOOP HOLES TO AVOID TAX PAYMENT, SAVE HIS INCOME TAX, AT OUR COST???, THAT TOO, COVERING HIMSELF BEHIND A BLACK BURKHA OF "ANONYMOUS"
YOU MR. ANO SAID TO Shri Prabhakarji, our most Respected, Senior Expert "If you have no expertise in this field, perhaps it would have been wise for you to control your temptation for earning easy points please." I JUST HATE YOUR REPLY.
I understand you not only insulted Shri Prabhkarji, you insulted the entire Expert Team of LCI.
If you do not want to accept the advise, you may ignore the advise, Why you bother about the Points?? Why should you comment ion whatever advise offred to you honorary, Free of Charge, and is a correct and valid advise.
What way you are concerned about the Points?/ And what is wrong, if he asked you to see a Professional with Fees. I understand, this is a right advise.
Who want to advise in Public FORUM to discuss Income Tax Loopholes to fool Government, and save your Tax?? In fact, you should be honest to pay your Income tax, for the country that offers a opportunities & allows you a job of 20L, with such infrastructure built with our Tax.
That YOUR INSULT too FOR ONE OF YOUR RELATIVE?? LET YOUR RELATIVE ASK HELP, AND WE MAY HELP, AND BE PROUD TO HELP A DESERVING CASE?? IF YOU ARE ACTING ON BEHALF OF YOUR RELATIVE, DID YOU REPLY PRABHAKARJI after his approval & under his instructions?? or you are acting ultravires??
If it is a Problem of your well educated, well earning Relative, why you are asking on his behalf? He cannot ask??
So I believe, you are not fit to ask query in this LCI, and better never ask again.
You want everything free??When you are earning 20 L p a??
IF AT ALL YOU WANT TO ASK, DON’T ASK ANONYMOUS, AND NOT FOR OTHERS.
BEHAVE PROPERLY NEXT TIME, OR BE PREPARED FOR STILL SOUR DOSE FROM ME, MR. ANO.
I AM THE LAST MAN TO TOLERATE SUCH NON SENSE.
Adv Shroff
22-01-2012
