ITR3 Form Filing in Chennai   - Kanakkupillai
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10 salary components – Reduce 
TAX Burden | Kanakkupillai 
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. 
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. 
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. 
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.
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. 
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. 
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. 
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. 
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 . 
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.
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. 
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 . 
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.
Contact Us:
CHENNAI OFFICE
No 13/22 2nd floor, Yatra, TNGO Colony, West 
Karikalan street, Adambakkam, Chennai – 88
Phone: 7305 345 345
Email: [email protected]
https://www.kanakkupillai.com/
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