Tax Saving Tricks used by Employees of Big MNCs in India | CA Sahil Jain
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- Опубликовано: 2 окт 2024
- In this video, we will see how employees smartly structure their salary to save a good amount of their payable taxes.
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The delivery, the lucidity, it's just incredible. As a fellow CA, I'm proud that people like you grace our profession, Sir
Totally agreed
Knowing Theory is one thing and applying it to practical life is another! Thanks to Sir Sahil Jain's videos I am able to learn so much!!
I recently given ca foundation dec 22 exam
Bro I want to know tha how ca sahil sir taught in regular classes how many duration of watching hours .does he complete syallabus timely ?
Hello Sir,
I really appreciate the way you're explaining and sharing knowledge in order to spread awareness regarding Taxation. However there are few things to be considered -
1) It is the Industry norm and almost no company allows more than 50% of Basic Salary as HRA. In your case it has been taken 82% which is not practically feasible.
2) If Company which is registered under GST and makes a rent agreement for residential property additional cost of 18% GST will have to paid under reverse charge.
3) Request you to make video by examining it from all angles and with practicality and without having your own assumption.
Absolutely true, aur jab 9 lakh rent p hi pay kar diye toh bachaya kya khaaq. Rs10000-15000 pm (jo hota hai) rent ka example 20 Lakh salary pe lagaiye. No assumptions. Assume karke kisi ne 16 LPA saary ko tax free dikha diya youtube pe, toh 16 LPA wali tax free thori na ho jaegi. Usne education loan dikha diya, child hostel allowance dikha diya etc, ut har kisi ke bacche thorr n hote hai. Assume those facts which can commonly be assumed, not just anything to save tax. 9 lakh perquisite pay karke tax hi bachaya sirf, invest toh kuch kara nhi 9 lakh me se. 🙏
You are right. This is not practically work with company.
Exactly and many IT MNC doesn't offer to make any changes in their structuring even asked by employees, so this video is only for sharing awareness about laws which exists but doesn't fit practically in many sector
@@krdharmjeet what is the use of this video when this not going to help us. I really expect videos which will be helpful and practical.
1. Gst paid under reverse charge can be claimed as input by company itself so the is point is not valid here.
2. This video is for awareness purpose and if your employer is ready to structure your salary then you should restructure as best as you can.
No one teaches the practical knowledge, only sahil sir does it. Best teacher for a reason.
Apne sir ki ca final ki classes purchase ki hue h kya?
@@Hardik___0103 have you purchased ca final classes ?
All that you need to do is as follows:-
1) Apply Cases 1 & 2 to your income and house rent and see which of these cases suit you the best.
2) Try to make your employer structure your salary in a way that you are able to avail that benefit. Not every employer will accept your request, but at the end, considering what is possible in your specific case, you should structure your salary accordingly.
Happy learning! ❤
👍
@@ugachch go to their official website and contact their team
Hi sir, there won't be any GST impact on the employer.? Recently from 18th July 2022 residential dwelling taken by the registered person will be subject to RCM.? Kindly clarify sir
Sir, is the bonus paid at the end of financial year considered part of the salary or considered separately?
In case 3, it will effect the loan size one can take?
Really willing to learn taxation from you in intermediate
You'll love Taxation then.
Me too bro...just worried how I will remember all the sections
@@Evo-zs2rg we have too after all we will going to become CA
@@YASHPATEL30604 true💯
Go for it
hanji good evening is the best opening line/intro by any Indian youtuber. No dosto BS, straight to the point. #loveit
In Case 3 : The employer will also need to pay gst for the residential property which he will deduct from your ctc only ( obviously) so we also have to consider that.
Individual owner are not under GST.
It's rare case where they have to pay GST
@@TheAryanAtul here perquistes given by the company is taken as deemed supply. So company is liable to pay the gst if they are GST registered.
rcm gst paid can be taken as input tax credit. so it has zero effect
@@Rogue-Bull ya I agree with this
Companies are hesitant to re-structure since the employer contribution to EPF gets affected. Did you consider this factor?
It could be as EPF is calculated from salary but the definition of salary is different in different context as stated in the video
@@tis_ace do employers re-structure an employee's salary on request?
But we would want to keep CTC high as that dictates increment in same company and while switching
Recently studied salary for may 2023 attempt. Thank you for practical aspect sir.
I am from medical background and still loving his lecture....incredible
Every employer make sure that HRA= 50%of basic pay. In this case, smart employer make structure like this basic pay = 13.3 & HRA= 6.7 so, HRA exemption will be 6.7 and taxable income = 20 - 6.7 - 0.5 = 12.8
So you think, CTC structure is in employee's hand? All big MNCs already have their own structure that will be applicable for all the employees. We can't change it
I don't think there is any way a 30 percent salary person can Save more.. He has to give more 😂
There is a section in salaries of MNC's like tcs and infosys called Bouque of benefit which an employee can modify as per his needs and can restructure , hra , medical expenses , leave travel allowance etc u can increase or decrease . Only basic section of income cant be changed
But if we are getting money in our hand , we need to pay tax. If employeer directly pay to landlord money does not get into our hand. That,s why income less ,so tax less.
Very helpful ..your coherence and clarity of presentaion is commendable ❤
There are many problems with having low base pay and with 3rd plan. We all get salary increment every year. The raise is generally given as a percentage of base pay by the company. If we reduce the base, our increment also decreases. In the long term, we may be saving taxes but at the cost of our own income.
yes this is what i was thinking.
so HRA is best?
Also do employers re-structure an employee's salary on request?
How can we position this to the company to convert the HRA into Perquisite? Amazing content, really appreciate all the knowledge that you share. Thank you!
Dear Sir, It would be more helpful for the South Indian students, if you share your knowledge in English as well bcz I was able to see all the topics selected by you are really interesting and helpful
Sir i am ur gd Student, you clear each abd every sections in very deep manner in class itself and thereafter these practical case studies are like additional to himoglobin into blood
Sahil sir, you still have an "out-standing" delievery even while "sitting"! :D
We love it that way, honestly! :)
Please consider kariyega! :D
Hi Sagar. Thanks for the constructive feedback.
Change looks bad initially. Give me 2-3 more videos in this format. If at all you still feel that you liked that earlier one more, I'll switch back to it :)
@@TaxationWithCASahilJain Theek hai, sir! :)
Sir, hide this video from Nirmala kaku or anyone who can reach out to her. Kaku will immediately impose 10 times larger tax than one can hope to save.
Thats why i always wondered how such in efficient tax system has been in yhe Country...its has got nothing to do with reality and works only towards complications..where honest people are penalized and dishonest persons are awarded...
A simple banking transaction tax would solve all the prob...& trust me if can make such a complicated tax law workable in the country, we can surely make banking system as the most prominent tax levy system as well...where it would be more simple, award honest and small income earners directly or indirectly and would tax rich person more..
Well explained. A small suggestion, please avoid saying "nikalke aata hai" so often.
In the last senario.... You did not considered increment in rent every year.. and the inconvenience of contracting with landlord every 11 months....If the tenure of the contract is to be taken more then 11 months then the muncipale tax of near by 10% of the Munciple value of the property(which no one wants to pay)... I don't think any MNC will agree to restructure this way...
Sir, I have few points to say,It would be great if you clear them.
1. The benefit is clearly there in comparison. But. I would say rarely someone will pay 50k rent and that too it is 6L. I feel the amount considered is too big and it unnecessarily glorifies the savings between multiple cases. a rent from 15k to 40k is a genuine rent I feel that the masses would be paying.
2. HRA component is also never this high in the CTC. and every company doesn't allow restructuring.
3. Realistically, still no one pays such high component as rent. And Even if everyone is earning and managing to pay such huge rent. Eventually as he is considering the complete rent, others still have to pay taxes as they won't be able to get rent benefit.
It's my 8th time I'm watching this video ❤️ I just loved it the way you teach....❤️💫
This is benefit for the students because a teacher who teach and also a professional in that field teach better than who have only bookish knowledge because like sahil sir they can compare tax provisions into practical situation 🙂
Prerequisite mein problem yeh hai ke job change mein salary hike mein dikkat hogi
2nd you will be dependent on employee for home and it will be difficult to switch
sir your way of teaching is excellent. But I have question regarding 3rd option, in 3rd option CTC of employee will be reduced on paper and employees never want to decrease his CTC on paper.
thanks for your guidance.
Tu kyu dekh raha haii🤣🤣
Hai tere paas mnc mai job🤣🤣
Case - 3, completely depends on company
Case -2, mostly this will work
I have never seen any employers asking the employee about tax structuring. Didn't even know that is a thing. Also, I wonder if any employer would take the headache of paying amount directly to a landlord which can change every few years.
did you find out if Indian employers do this?
This is the reason why we see your video to know more about which things and where we save tax throughs seen your video
An 2nd engineering student, very much passionate about PERSONAL FINANCE B and wants to make carrier in HARDCORE FINANCE,
Awesome vdo sir, you made this concept extremely simple. ❤❤❤❤❤
you are too good to explain things like a layman
One of the best tutor
Only a few MNC allow, my mnc doesn't allow custom structures as its more work for them
Sir in the case where house is treated as a perquisite, what will be the final income in the hands of employee ( after deducting tax)??
Employer will pay 9 lakh as rent to landlord.... But who pay 9 lakh as rent out of 21 lakh salary...😅😅😅😅 Take practical examples
There are many hurdles to consider for this video. 1) Employer will never give even 1 rupee more than 50% as basic salary (reason being retirement benefits like gratuity/EPF/ESI/Bonus/leave salary are mostly calculated on basic portion). 2) this huge deduction is possible only for those who are actually paying rent to a real 3rd party (not relative): reason being it would rental income in hands on landlord so all this exercise has no use 3) RCM GST liability on rent increases working capital constraints on Employer 4) TDS on rent 5) no other expenses component to my knowledge apart from house to which such structuring could even apply so those who live in family home are back to square one
Thanks. You make much more sense than this dude
but next year increment will be based on base pay so low base pay
1st idea is common practice by employees though 2nd one related to perquisites is good discovery though not practically applicable in case of MNC employees atleast. They can't negotiate with these companies to mk them bifurcate CTC as per employee's wish.
Hello Sir, The content was awesome. I request you to make more videos for the salaried employees for tax benefits.
In the case of HRA 3rd scenario, but the 9Lac paid to the different accoutn will also be taxed, so total tax paid will come out to be around same.
Sirji, you forgot to mention the TDS on rent which is payable to govt if our rent exceeds more than 50k a month.
Please suggest Sahil on this... My landlord in Bangalore takes rent around 16k per month also mentioned in the rent agreement, but does not provides PAN Card number claiming owner does not owns a PAN CARD. I heard that there is a form if signed then during ITR, I can still get the taxation benefits. Kindly share all the possible scenarios that I can get to save taxes, this is similar scenario for too many colleagues and friends working in Bangalore.
Basic pay CTC ka 50% hi allowed hai... 20 lakh CTC ka 11 lakh apne basic kaise pakda?
Mujhe ab tak samaj main nahi aa raha ki main 9 lakh rent kyu bharu? 😂😂 Matlab kuch bhi
Sir ,I am a deaf student .I like your videos. My brother sees your video and explain it to me.
Sir,can you please add English subtitles so i can watch videos independently.
Sir, now we need tax saving videos for self-employed. Like whom want this to be next video.
Your explanation is amazing as always.
People don't pay 9lac rent with 20lac ctc
I sometimes feel jealous that such a premium content are available at free of cost!!!
Thank you so so much sir for making such video!!!🙏❤️
Really True🥺
Good one. But jo log apne ghar pe rehte h wo kaise maximum tax bacha sakte hai apart from the 80c principl and 24a
Add some subtitle in English or if possible make a video in English that might be helpful for all...
Amazing Sahil Bhai
A person being insecure about sharing this structuring plan with his/her employer,decides to share this video with his employer to ask them in determining which case 2 or 3 might be beneficial for him,The employer after taking this into consideration might say:
"Now that i have taken efforts to provide u the benefit of time value of money,i expect u not to ask for a hike any time sooner🙄😬😅😂."
Thank u so much Sahil Sir for taking efforts from ur side to bring such great practical content.
But in cases where, the company has employees in hundreds, how would it feasible for the company to get all rent agreements in their names and turning them into perquisite?
Would it not be a practical constraint? And with that rcm and TDS provision will also come.
1) It definitely could be a constraint but the point to be noted is that not everyone would be benefitting from Case 3, hence, not everyone would be going to their employer with that demand. Doing this Case 3 treatment for a few, especially the employees at higher levels is something that can be bargained with the employer.
2) This video is not about recommending Case 3 to anyone. It is about explaining how structuring salary can benefit you in multiple ways.
Agreed. Very well stated.
Thanks.
Freaking excellent video! Can't believe that taxation can be taught so interestingly.
Hi Sahil sir. Do you also provide tax planning services? :P
Yes, he runs his own ca firm
kuchh bhi.. Rent payout pe TDS katega, no land lord will take it. Upar se on-paper CTC bhi kam ho jayega .. kabhi MNC chhodo salary pe job karo, sab pata chalega
Bulk employers don't individually adjust your packages...
GOOD SIR, VERY KNOWLEDGEABLE VEDIO, RESPECTED SIR, AAJKAL EMPLOYER APNI RESPONSIBILITY SE BACHANE KAI LIYE EMPLOYEES KAI JOINING LETTER MAI, TRAINEE/ APPRENTICESHIP, CLERKSHIP, PROBATION, INTERNSHIP, ARTICLESHIP ETC. WORDS DAL DETE HAI, EK MUSAT AMOUNT EMPLOYEES KO PER MONTH PAYMENT KARTE RAHATE HAI 1 YEARS SE LEKAR 5 YEARS TAK EK MUSAT AMOUNT KA PAYMENT KARTE RAHATE HAI AND EMPLOYEES SE WORKS LETE RAHATE HAI, EMPLOYEES SAMAJ NAHI PATA KI ITR KAISE FILE KARE TAX KAISE BACHAYE, US SITUATIONS MAI EMPLOYEES KYA KARE PLEASE INFORMATION SIR VERY VERY CONFUSION LOT -OF EMPLOYEE KYOKI UNKO SALARY STRUCTURE VAHA UNKO NAHI DIKHATA HAI
Employer generates form 16 and basic is never considered as total ctc -HRA.
WE can show basic as 11lac while filing but that might be a diacrepancy with form 16 issued by employer and in case of notice by tax dept.
There is no justification that can be given
Thanks
Do you think saving tax is good thing?? Don't promote it as TAX savings. Speak it as Money saving instead. We all have EMI, RENT, TUTION FEES etc., so after all these, we have to pay tax for the income we get. Its not trick, its management.
f&o trading pe tax kese bachaye ...uspr video banao
Wonderful explanation bro. However, I have a request. As your speech is in Hindi which is extempore - can you slow down a bit with your deiivery? We south Indians find it difficult to catch up with your Vande Bharat Bullet Train. Thanks.
Great video just a question for company lease there is a GST applicability how to save that?
I got My Answer, which was in my mind and even asked you before. ❤️
Thank You. 👍🏻👍🏻
Sir I am a medical student persuing post graduation. Stipend is 70k.. TDS 10%.
Tax deducted from stipend in last 5 months.
If stipend in not taxable. how to move forward with it?
How to get the refund of the money already deducted and how to stop the future deduction m
Can you or someone who can help with the GST rules on rental in such cases:
What about GST on rent if the company has to pay rent on behalf of the employee?
I don't think employees have flexibility to choose the break up of line level...that's mainly being trickle by the employer centrally.
Sir please make videos on how to cut down income tax for agents, freelancer, representative etc
Hello Sahil, my salary is 20 lakh but my yearly 5.7 lakh basic pay yearly and HRA 2.8 lakh and other allowance is 10 lakh then how can I save more tax income and I can apply case 3 in my salary
I work for Google and they do not give the major options discussed in this video like turning rent into perquisits. Hence, using Google's company logo is totally misleading. Not expected from a reputed channel like yours.
Sir aapne toh poore India ke salaried employees ki Tax planning Kardi. 😆😁
Interesting topic. But things could be delivered in half the time - till 5 min (25% of the total video) very less is told. Please deliver to the point quickly - otherwise people lose interest. People don't have time to listen till 7 minutes, as to what is going to be told in next 15 min!
sahil bhai tu toh tagda ho gya yaar
Thanks for the information 👍✌️
That’s why I use Bitcoin why should someone else already richer and powerful should get your money
I hope no one from IT dept. see this video. 🤑
Dear sir I am govt employee....I got a house from my employer...how I can save my tax
Wise people watching this and dumb are busy watching reels
Who with 20 lac CTC, will stay in 75k rental accommodation?
Really learned something new today
Thank you for the details.
can we claim hra deduction when we are living with parents and there is a rent agreement with them?
No
sir you missed the following important aspects in the video
1)Deduction u/s 80GG in case 1
2)Gst payable by landlord in case 3
3)Its highly unlikely that a person earning 20L will spend 11Lakh together. Instead , his expenditure would comprise of multiple small transactions, for which he cannot trouble the employer every time. So practically speaking , in case 3 he would be availing benefit only for large expenses , and considering overall gst effect , case 3 is practically useless.
Im your student sir , don't take this as a hate comment .
Thanks for initiating this discussion Rahul. Let me answer all your concerns:-
1) 80GG is not applicable in either of the 3 cases discussed in the video. Read 80GG again and you'll know why.
2) GST Payable by landlord shouldn't really be a problem since that landlord will get an ITC of the said amount.
3) Towards the end of this video, I have explained situations where rent paid as a percentage of income is high and the reasons behind it. More so, this video is by no means an attempt to tell people to not claim HRA and go for Case 3. All I have said is that depending on your income and rent paid, either of cases 2 or 3 could be beneficial for you. Just do the analysis and choose whichever case saves you the most amount.
Hope I was able to answer your concerns. All these videos give some food for thought and make the viewer think of ways in which they can save taxes.
@@TaxationWithCASahilJain Thank you sir for clarifying my doubts
I know this clauses Nd rules theoretically but the way you explain its practical implication is way beyond my imagination. Thank you for this video Sir.
kindly explain some tricks for government employees.
are these options limited to MNC employees only, or can be beneficial to medium sized indian companies as well
Any private company, he mentioned MNC because these days companies like google, Microsoft, etc are giving huge packages.
Hello sir check your calculation on 10%of 11Lakh
Watched for 10 mins … assumption of 9 lac rent is unreasonable… who pay such a high rent?
Sir why 9 lakh amount for rent payment
Can it above 9 lakh
Sahil Bro , but most of the employers won't do this perquisite thing. They directly give all of the salary to the salary account . Tax saving through perquisite route is technically possible but the practical aspect of working it out for a corporate employee is close to impossible. Because companies will only do something for employees if they are liable to do it. There won't be any favours.
Samsung does not do this structuri ng and khunnaas employees se nikaalte hain
Why you are moving but? its too much distracting
what is that percosit? what is it's actual spelling and meaning?
Hi sir..i have one query..can company pay HRA >50% of Basic Salary? if not then how 9lakh hra amt consider on 11lakh basic?
If you're referring to metropolitan cities wherein 50% of salary is to considered then you should compute salary (basic+da(which forms part of retirement benefits+commision as % of turnover ) and not just basic salary
Your voice matches with voice artist of profressor of money heist
50k will be added to deduction in the first case as well, correct?
Landlord receiving 9lac rent would have to pay taxes at 20% slab
Evere city have some property valuation, how can anyone show 9 lac or a very high value??