Saturday, 19 March 2016

A Comment on a topic suggesting tweaking of your salary structure to lessen the tax liability

My comment on an article "How to restructure your salary to pay less tax in FY 2016-17" published in the on Dated 19/03/2016.

Very useful tips given here by the author of this article for tweaking the pay structure and pay lesser tax. You can view the full article by clicking at this link.

If you draw a salary of Rs.1 lakh per month, you can show the basic as Rs.50,000 or even 40,000 and get the remaining portion of the salary re-structured as HRA, LTA, Conveyance allowance, Employer contribution to EPF and NPS and balance amount as other allowances. 

The effect is you get tax deduction exemptions on all allowances and tax liability becomes very nominal. Good examples are given by the author to support his arguments.

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