Design a package for 13 lakh so that minimum TDS is deducted considering ALL THE SAVING A PERSON CAN DO under all sections

I have changed the job, and now my current package is 13,00,000 (13 lakh). Now in this new company, there is no PF. Kindly please help me design a package for 13 lakh so that the minimum TDS is deducted considering all the savings a person can do under all sections and provisions. I want the minimum TDS to be deducted. Please note, since I am in a senior position, so car, phone, etc., are all extra to this 13 lakh package. 13 lakh is just take-home - TDS.

Dear Mr. Singh,

Whatever is coming into your salary slip will be considered for your INCOME TAX calculation. So the best way to reduce INCOME TAX is to split the salary into salary and reimbursements. For reimbursements, you need not have to pay tax. Few examples of reimbursements are - Medical reimbursement, petrol reimbursement, vehicle maintenance, driver salary, etc. You may please check with your employer in this regard. There are certain limits also in this category.

Another option is to go for rent-free accommodation in case you are not staying in your own house. Here you need to check the actual benefit because in such a case, 15% to 20% of your total salary may get added to your total income if you opt for this. So you need to analyze the actual benefit in this.

For tax savings, it is not necessary that you can get an exemption of Rs. 1 lakh under Chapter V:
1. Insurance premium paid for self, spouse
2. Children's school fees
3. National Savings Certificate - (check the schemes eligible under this)
4. Equity-Linked Insurance Schemes
5. Principle repayment of Housing Loan
6. 5-year fixed deposits with banks, etc.

In case you have a housing loan interest up to 1.5 lakhs, an exemption will be available. In addition, you can get an exemption of Rs. 20,000/- in infrastructure bonds. Also, mediclaim insurance for self and dependents is in addition to this.

I just gave an idea of savings, but please check the limits in this.

Hope that this will help you.

Regards,

VENUGOPAL

Dear Mr. Singh,

I do not understand why you are not getting the breakup. Request the new employer to provide the breakup of the package. Definitely, they will provide it. If you need any changes in that, you can request them to make amendments. Salary package variations differ from company to company. Before receiving the appointment letter, ensure you check the details first as it may not be possible to make changes later on.

Regards,
VENUGOPAL

Thanks Venu for the advice. I have already asked for it, and they will provide it. However, I wanted to have a breakup in my hand too so that I can make some changes. Anyway, thanks a lot.