Hello friendsI am new to forum and new to HR. I have designed a salary structure for my company - financial institution.Wherein all employees are highly qualified.I am attaching excel sheet please let me know the income tax applicability, exemptions and FBT applicability.Please help. This is my fist assignment and i dont want to loose a chance.Please guide me. ThanksRegardsPari
From India, Mumbai
19From India, Mumbai
HI Please find my views for the same. attached excel sheet displays the remarks. Regards Rajeev
From India, Bangalore
From India, Bangalore
Thank you for your reply on Salary Components and Proportionate taxability.Can i bother you with one more querry1. How do you value Gratuity and Mediclaim per employee so as to account in CTC.2. Also i have posted one querry regarding PF on forum and attaching it here if you can help me with that too PleaseThank youPari
From India, Mumbai
From India, Mumbai
HI pari.
1 gratuity while including in the CTC can be valued @4.81% of basic salary provided by you,as per policy of you comapny or as per govy min payment is X*15 days/26 days ex 10000 is last drawn basic salary hence if you value it @4.81% it will be 481. if you do it 10000*15/26 it will also be 481 hence value gratuity @4.81 % of your basic salary and added it up in your CTC.
Regarding the PF query please find my ans in blod in the attachment.
Regards
rajeev
From India, Bangalore
1 gratuity while including in the CTC can be valued @4.81% of basic salary provided by you,as per policy of you comapny or as per govy min payment is X*15 days/26 days ex 10000 is last drawn basic salary hence if you value it @4.81% it will be 481. if you do it 10000*15/26 it will also be 481 hence value gratuity @4.81 % of your basic salary and added it up in your CTC.
Regarding the PF query please find my ans in blod in the attachment.
Regards
rajeev
From India, Bangalore
Dear Pari,
Answer provided is correct in Excel but certain components cannot be Non taxable s you need to study IT act salary pert.
like LTA the period as described by it act 2006-2009 calender years i.e one can claim it benefit for any two years in block of 4 years .
Secondly pertol attract FBT which is 7% tax .
Thirdly Gratuity is tax free to the extend of 3.5 lacs only
One need to under stand the heads in regards to income tax provisions.
regards
hemang
From India, Madras
Answer provided is correct in Excel but certain components cannot be Non taxable s you need to study IT act salary pert.
like LTA the period as described by it act 2006-2009 calender years i.e one can claim it benefit for any two years in block of 4 years .
Secondly pertol attract FBT which is 7% tax .
Thirdly Gratuity is tax free to the extend of 3.5 lacs only
One need to under stand the heads in regards to income tax provisions.
regards
hemang
From India, Madras
Hi, Will you please clarify the cap for attire allowance??? Is it true that it does not attract FBT or IT both?? Regards, Vaishali
From China, Shanghai
From China, Shanghai
Hello Rajeev.Good MorningThank you for your reply on my query wrt Salary Components and Taxability and also PF. Your reply' are clear and to the point. Even though I have got some more doubts about PF . Please find attached word document. And answer me.Thank youRegardsPari
From India, Mumbai
From India, Mumbai
Isaw ur work.Before u design a ctc, u should have the basic salary known.After which you can calculate the deffered income,basic linked incentives,and of course the indirect cost to the company.As per the norm the take home salary should be round about 7opercent min. of the the ctc.bye let me know.
From India, Pune
From India, Pune
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx