Exemption in salary heads

santoshchauhan2005 · #1 25-07-2009, 02:02 PM

Sir,

There are many head in the Salary of the person, so i wanted to know what are the exemptions availed in the I.T. for below given salary heads :

1) HRA
2) Conveyance
3) Medical Allowance
4) Uniform Expenses
5) Tuition Fees
6) Other Allowance
7) Vehicle Allowance

Also let me know the percentage of basic salary from the gross salary.

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umakant gairola · #3 25-07-2009, 02:36 PM

Dear Santosh

Mentioned below are the Salary Components:
1. Basic - 100% of the gross salary
2. HRA - 50% of basic in metro and 40% non metro
3. Conveyance - 800 fixed per mnth
4. Medical Allowance - 1250 fixed per mnth
5. LTA ((subject to company policy and entitlement) - 8.33% of Basic
6. Superannuation (Subject to company policy) - can be 3% - 6% of basic
7. PF (Subject to company policy) - 12 % of basic (employee contribution)
8. Flexi Basket--- its a fixed amount to can be for driver utilisation , petrol reimbursements, books & periodicals, home furnishing, business attire etc(this is non taxable)

***
Formula to calculate basic is 100+50+8.33+3+12=173.33
eg: salary 25000 pm, minus the fixed amount like conveyance and medical and flexi if ..so 25000-800-1250=22950
basic=22950/173.33*100
HRA = basic*50% ...
....
soonnnnnnnnnnnnnnnnn

umakant

sharmaharshal · #4 25-07-2009, 03:12 PM

Hi All,
Calculation of basic is deffers from organization to organization.

There is another way to calculate the Basic salary too

The current scenario is If the Basic pay is less than Rs 3500, the employer has to pay the minimum Statutory bonus ranging from 8.33%. Hence the employer makes the minimum basic of Rs 3600 and above. With effect from new parliamentry note of Basic revision to Rs 10000 towards Statutory bonus is still to be worked out.

However here are the few tips:
1. Basic Salary would depends on the designation level of the person.
2. Basic is usually fixed depending on the CTC. This can range from 20 to 60%.
3. Once the basic pay is fixed we can fix the other components with the required percentages (HRA, Other allowance, Medical, LTA, Reimbursemnts, etc

I hope this may help you.

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essykkr · #6 27-07-2009, 09:50 AM

Quote:

Originally Posted by umakant gairola

Dear Santosh

Mentioned below are the Salary Components:
1. Basic - 100% of the gross salary
2. HRA - 50% of basic in metro and 40% non metro
3. Conveyance - 800 fixed per mnth
4. Medical Allowance - 1250 fixed per mnth
5. LTA ((subject to company policy and entitlement) - 8.33% of Basic
6. Superannuation (Subject to company policy) - can be 3% - 6% of basic
7. PF (Subject to company policy) - 12 % of basic (employee contribution)
8. Flexi Basket--- its a fixed amount to can be for driver utilisation , petrol reimbursements, books & periodicals, home furnishing, business attire etc(this is non taxable)

***
Formula to calculate basic is 100+50+8.33+3+12=173.33
eg: salary 25000 pm, minus the fixed amount like conveyance and medical and flexi if ..so 25000-800-1250=22950
basic=22950/173.33*100
HRA = basic*50% ...
....
soonnnnnnnnnnnnnnnnn

umakant

First read the question what he wanted to know than comments, he is asking about tax exemption on these salary heads not salary break up.

Sanjay
Advocate

Divya_w · #7 27-07-2009, 10:28 AM

Hi,

Tax exemption is as follows:

1. Basic - 100% of the gross salary - Taxable 100%
2. HRA - 50% of basic in metro and 40% non metro - Taxable, subject to min of ollowing
1) Acutal rent paid.
2) Rent paid in excess of 10%
of Salary.
3) 50% of basic in metro &
40% non metro.

3. Conveyance - 800 fixed per mnth - exempted upto 800 p.m.4. Medical Allowance - 1250 fixed per mnth - exempted upto 15,000 p.a.
5. LTA ((subject to company policy and entitlement) - exempted for 2 trips in s block of 4 yrs. As per co. policy sub to
rule 2AB of income tax, act

6. Superannuation (Subject to company policy) - can be 3% - 6% of basic
7. PF (Subject to company policy) - 12 % of basic (employee contribution) - exepmted
8. Flexi Basket--- its a fixed amount to can be for driver utilisation , petrol - was exepted
but after
buget prequisite
valuation rule
shall apply or not
still is a question

Divya_w · #8 27-07-2009, 10:29 AM

Warm Regards,

Divya

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pdmurthy · #9 27-07-2009, 10:32 AM

This is with regard to Labour Welfare Fund, If, the company is situated at Mathya Pradesh and they have a Regional Marketing Office in Chennai (TN). The labour welfare fund paid by the Employer at Mathya Pradesh on behalf of Chennai employees. It is mandatory to pay the same fund here in TN too? Any clause is there? pls explain.

Regards,
P. Dakshinamurthy.

Doriyabharat · #10 27-07-2009, 01:17 PM

Pl advice for applicablity of Welfare fund deduction of Rs.3/- from employees & Rs.6/- from employeer
As per my knowledge, Those employees are below the post of Supervisor & Manager drawing salary up to Rs.3500/- are liable for recovery of SWF
Am I correct?
pl