Income Tax Return Filing in Chennai | Kanakkupillai

1. 10 salary components – Reduce TAX Burden | Kanakkupillai www.kanakkupillai.com

2. 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. 

3. 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. 

4. 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. 

5. 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.

6. 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. 

7. 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. 

8. 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. 

9. 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. 

10. 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 .

11. 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.

12. 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. 

13. 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 .

14. 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 @ 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.

15. Contact Us: CHENNAI OFFICE No 13/22 2nd floor, Yatra, TNGO Colony, West Karikalan street, Adambakkam, Chennai – 88 Phone: 7305 345 345 Email: support@kanakkupillai.com https://www.kanakkupillai.com/

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