Salary and Tax planning

Particulars (in INR)

Mr A

Mr B

Cost to Company (CTC) p.a.

10,00,000

10,00,000

Break up of salary: Basic Pay
House Rent Allowance (HRA)
Other Allowances
Employer Contribution to PF

5,00,000
2,50,000
1,90,000
60,000

4,00,000
2,00,000
1,90,000
60,000

Rent Paid

3,00,000 with proper documents

3,00,000 without proper documents

Tax Calculation

Taxable Salary (Net of employer contribution to PF)

9,40,000

9,40,000

Less: Standard Deduction

(50,000)

(50,000)

Less: HRA not taxable

(2,50,000)

-

Less: Employee Contribution to PF

(60,000)

(60,000)

Less: Deductions wrt tax planning investments

(90,000)

-

Taxable Salary

4,90,000

8,30,000

Taxes Paid

0

81,640