Hi All,
Let me try and give you an idea about components of salary
1) Basic - 35 to 40 % 0f gross (taxable)
2) HRA - 40% of basic ( incase of metro cities 50% of basic) ( exempted from tax incase the employee gives rent receipt at 10% of gross annual income or as defined in salary and as per receipts produced)
3) conveyance = 800 per month (800* 12 = 9600 p.a.) (exempted from tax)
4) Medical Reimbursement = 1250 per month ( 1250* 12= 15000 p.a.)(exempted from taxable income)
5) LTA = 1250 per month (1250* 12 - 15000 p.a.)(can be exempted from tax twice in block of 4 years)
6) Meal allowance (cannoned be more than 65Rs per day so 16250 p.a. if 250 days working.
You can put the remaining amount in Special Allowance ( whole of it is taxable) or account for in other allowances such as uniform allowance ( upto 10,000 p.a.)(not taxable), Internet access allowance, phone allowance, professional enrichment allowance,entertainment allowance, City compensatory allowance(20% of basic)(Taxable) etc.
Then in case there is PF deduction:
1)Employers contribution of PF = 12% of basic + DA( 8.33% in FPF (family pension fund) + 3.67% in EPF)
2) Employees contribution in PF = 12% of basic +DA (all in EPF)
In case the gross salary of the employee is less than 10000 then he comes under ESI. Incase ESI is applicable in the organization then
1) Employee contribution to ESI = 1.75% of salary
2) employers contribution in ESI= 4.75 % of salary
tax slabs
0 - 1,00,000 = 0%
1,00,001 - 1,50,000 = 10 %
150,001 - 2, 50,000 = 20%
2,50,001 onwards = 30%
Neha
