salary breakup

Please suggest me a salary breakup of 25000/- per month salary and after all the break up how much amount will still be taxable. Thanks

Hi Shilpi,

The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.


Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy

EX-Gratia/Bonus = A fixed amount as Bonus

Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia

Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Hope it would help you to prepare the same at your end..


Regards,

Amit Seth.

Thanks a lot. I would like to know as i am working in Indore , is city compensation allowance is taxable here or we can get exemption from tax on this allowance.

Welcome Shilpi..

Actually amount of rupees 800/- of CCA is exempted from taxes..

Hi Amit,

I have seen some really good suggestions in some old posts that you have given to people regarding their salary breakups. Can you please help me figure out a breakup for a salary where the company has just given the total fixed sum as Rs. 100,000/- per month?

Please help me with some inputs so as to what all componenets should be include in the breakup to maximize on the monthly take home and minimize the tax liability?

Here are a few details about the company..its a small company with only 5 employees in India so I am not sure if they are bound to take care of PF. professional tax, Gratuity, Super annuation etc or not..in either case what all percentages should be assigned to BASIC, HRA, Medical allowance etc to minimize the taxes..

Would appreciate any help at the earliest possible..Thanks!

Regards,
AM

HI Amit,

Please let me know how we will decide Basic Salary. Is it any persentage of CTC.I can calculate all things on the basis of basic salary. SO please hepl me and give me your precious suggestion that how i would decide basic salary on different salaty break up.

Thanks ,

Shuchi

Hi Anshul,


For your reference have appended a salary calculator. It lists out the components that should be part of the Salary considering that the co is not covered for PF, ESI etc. All you need to do is enter the Annual Salary in cell B7. As to reduce the tax liability you can introduce reimbursements for telephone usage, vehicle running & maintenance, Sodexho coupons. All these are tax free if bills are submitted for the specified amount.

If you need any clarifications please feel free to ask.

Attached Files

Salary Calculator.xls (14.0 KB, 230 views)

what abt pf & esi deductions not mentioned in the attachment. Can u kindly provide the same for it.

hi

ur salary break up was is of great help, but if u could send it with pf & other deduction as well as showing take home amount, it would b of great help.

MP