contruction of a package of Rs. 9,00,000.

salary (30%of 900000)

education allowance (2*100*12)
transport allowance (800*12)
helper allowance (2000*12)
uniform allowance (2000*12)
research allowance (entire amount is used in
conducting research
rent free house (20000*12)
car with driver (134000+36000)
reimbursement of med. Exp
LTC (twice in a block of 4 yrs: exp per year
free telephone/ mobile phone
gift in kind
free lunch in office (Rs. 50/per lunch for 300
days)
mediclaim insurance premium
employers contribution in recognised PF
(270000*12%)
Total

less deduction u/s 80c (employers contribution

in recognised PF @ 12% of salary)
net income
tax (
EC& SHEC
effective tax rate (%)

If optimsed
amount
270000
2400
9600
24000
24000
9000
237600
170000
15000
50000
12000
5000

taxability
270000
0
0
0
0
0
40500 (270000*15%)
21600 (1200*12+600*12)
0
0
0
0

15000
24000

0
0

32400
900000

0
332100

32400
299700
13970
419.1
14389.1
0.0160

179220= tax on Rs 900000 if not optimised

(270000*15%)
(1200*12+600*12)