Hi, I am a fresher and I received my offer letter two days ago. The annual compensations were detailed as follows: basic - $150,000, house rent allowance - $75,000, provident fund - $18,000, leave travel allowance - $30,000, medical allowance - $15,000, conveyance allowance - $9,600, special allowance - $202,400, totaling to $500,000 in total pay. Deductions include provident fund - $18,000 and professional tax - $2,500, resulting in a net take-home pay of $461,500. The net take-home pay, excluding medical and travel allowance, is $416,500.
Could you please explain the breakdown of these components and inform me of the amount I will receive after tax deductions? Also, are there any special tax savings available for women?
From India, Hyderabad
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Could you please explain the breakdown of these components and inform me of the amount I will receive after tax deductions? Also, are there any special tax savings available for women?
From India, Hyderabad
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Hi,
Attached is your tax working as you mentioned, the salary breakup. Up to 190,000, there is no tax. From 190,000 to 500,000, the tax percentage is 10%.
In your case, for saving tax, you can take exemption on the following documents:
- Rent receipt
- LTA claim
- Medical reimbursement claim
- Investment in 80C up to 82,000/- (LIC/PPF/NSC/MF/BONDS/EDU LOAN, etc.)
- In 80D, you can submit medical policy up to 15,000/- and another 15,000 for your parents.
- You can also invest in infrastructure bond (section 80CCF).
Whatever you invest as per the above limit, your tax will be saved by 10%.
Thanks & Regards
From India, Mumbai
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2Attached is your tax working as you mentioned, the salary breakup. Up to 190,000, there is no tax. From 190,000 to 500,000, the tax percentage is 10%.
In your case, for saving tax, you can take exemption on the following documents:
- Rent receipt
- LTA claim
- Medical reimbursement claim
- Investment in 80C up to 82,000/- (LIC/PPF/NSC/MF/BONDS/EDU LOAN, etc.)
- In 80D, you can submit medical policy up to 15,000/- and another 15,000 for your parents.
- You can also invest in infrastructure bond (section 80CCF).
Whatever you invest as per the above limit, your tax will be saved by 10%.
Thanks & Regards
From India, Mumbai
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