Mukul Mathur
Human Resource
Regional Human Resource
Sap Hr Consultant
+3 Others

Hello members,
I am unsure about the accurate salary calculations. Pls find the attachment
here basic is 40% of net and HRA is 50% of basic. There is no DA. The components are fixed, but would like to know the correct apportionment. Pleaseeeeeeeeeeeee help, as this is very urgent.
Thanks in advance

21st May 2008 From India, Gurgaon

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Every thing is pretty fine with it,though you can make some modifications like limiting the employer contribution of pf to 780 rupees,but again its a policy
decision you have to check it out with your management if they would like to limit their contribution of PF.
21st May 2008 From India, Pune
Hi, There is no Conveyance Allowance (Rs.800/-) Basic should be calculated on CTC not on the Net Pay. Otherwise everything is fine. Regards, Sujan
22nd May 2008 From Australia, Parramatta
Don’t worry..The structure is absolutely fine. However, it is not a tax friendly structure.
22nd May 2008 From India, Mumbai
This stack-up sheet does lack Conveyance allowance(Rs.800 Pm) as sujan says (check if they have LTA instead) and aslo lacks Mediclaim (Rs.1250 pm); though they provide you with Medical Insurance & Accidental Insurance Premium, these most often should be over and above your CTC.
Your CTC is fully taxable, so do chat with your HR if this CTC can be made any tax friendly by having LTA reimbursement or any other Fringe Benefits.
Otherwise this structure looks fine.
Meena Kumari R
HR Specialist
22nd May 2008
I deeply thank the members for these inputs.
But would like to know, how is the conveyance calculated.
Ms Meena and Mr. Vali, you have suggested Rs 800 for conveyance, which is 3.05 % of the gross. Is that the % age that we consider for appoertioning conveyance??
Also Ms. Meena, there is LTA present in the stucture in CTC. So can the employee get a tax benefit here.
23rd May 2008 From India, Gurgaon
Conveynce is most often a fixed amount in the salary component and is Rs.800 per month (Rs.9600 pa). (dont think its calculated in percentages)
LTA is tax benefit given by the employer, you can claim it by producing your travel receipts / bills; otherwise this amount will be anyway paid to you at the end of the year and will be fully taxable.
Meena Kumari R
HR Specialist
23rd May 2008
Hi Sukanya,
Usually Conveyance allowance has been kept @ Rs 800 pm, as per the IT act it is non-taxable upto Rs 800 pm. I.e it would save tax of the employee.
There is no such ruling that it cannot go beyond Rs 800 pm.
Regarding LTA, it is a non-taxable component subject to the production of bills by the employee. An employee is eligible to avail it twice in a block of 4 years. These blocks are already defined in the IT act. I thivk the running block it 2006 - 2009.
It is an optional componenet which an organization may choose to offer to its employees in order to extend an option to save tax.
Hope this would bring in more clarity.
28th May 2008 From India, Mumbai
Dear Sukanya,
When you say Cost to company PF contribution from "EMPLOYEES" do not add to CTC,
Please find breakup of the salary structure of the individual who is having gross salary of 3.0 lakhs as per your % basis only
Basic 120000.00
HR 48000.00
MCA 78000.00
Special allowance 54000.00
Total Gross salary is 3,00,000.00
Add LT & Medical / accidental insurance of 12000+1158+506
Hence his Total CTC would be 329996.00( approx 3.3 lakhs)
PF "Employees" contribution is not part of CTC( since the same is being deducted from employees gross salary.
if you are adding this to his special allowance & then deduction from his salary the employee will be taxed on special allowance( in extra) & PF benefit on taxation will be nullified.
28th May 2008 From India, Bangalore
Thanks Rajeev and Mukul,
Would like to have some information on LTC form all of you members.
Mukul, as you have said that LTC can be availed twice in a block of 4 years. Is it also applicable for service industry?
One qtn: if we are alloting LTC of Rs. 12000/- and he is not able to avail it or does not apply for it, his LTC will carry fwd or get exhausted?
Also in LTC, the employee enjoys tax benefit, but what about the employer? If the employer has to pay taxes for the benefit, then how do we convince them to include it in the cTC of all.
Would require your comments on the above
28th May 2008 From India, Gurgaon
hi members ,
till now i come to know that every company has got there own computation according to the industries . but none have given or prcribe the how TDS can be deducted as every employee declare there saving at the last month of every finacial year . actual positions / otherwise everyone has got there own ideas to save the tax ok .
my direct question is wat is tax rate of tds on salary slabwise ?
29th May 2008 From India, Delhi
Dear Sukanya
1) LTC or LTA is applicable for every industry.
2) as per the Income tax it can be carried forwarded to next year, since company forms policies on this they might restrict it ( if the organisation is BIG it will be difficult for them to track the same, since there will be lot of attrition in service industry it is better to be paid out during year end and taxed instead of carry forwarding the same.
Carryforward or payment( taxable in case on not claiming the same) will purly depend on Company policy.
3)LTC/LTA is not taxed at employees hands( Exemptions under Sec 10(..), it also does not form part of Fringe benefit taxation hence employer will also not be taxed. you can go ahead with adding this component to the CTC of employees employer is not taxed for LTA.
29th May 2008 From India, Bangalore
Income tax calcualations is common it does not differ from companies to companies( calcualations will remain the same since there are Specific sections & exeptions where in all companies has to follow it).
Every company has their own salary structure & taxes will be calcuated based upon their Total gross income.
tax rates for the current FY is
Net taxable income( after all deductions & exemptions from respective sec)
Taxable income slab (Rs.) Rate (%)Up to 1,50,000- nil
Up to 1,80,000 (for women)-nil
Up to 2,25,000 (for resident individual of 65 years or above)NIL
1,50,001 – 3,00,000-10%
3,00,001 – 5,00,000 -20&
5,000,001 upwards 30%
A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000.
Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
29th May 2008 From India, Bangalore
Hi, I am new to the forum and I need help with the salary breakdown. Can someone help me by showing me the most tax friendly salary package for CTC of 15 lakhs? Thank you Sue
6th January 2009 From United Kingdom, London
Please provide information as follows for one day as per central government rules in madhya pradesh for B & C zone
Basic. 231 b zone & 186 for c zone
EPF. employee contribution
EPF Employer contribution
ESIC employee contribution
ESIC employer contribution
Workman compensation for Zone 'C' for each employee
January days are 31
February days are 26
7th March 2013 From India, Mumbai
Please provide information as follows for one day as per central government rules in madhya pradesh for B & C zone
Basic. 231 b zone & 186 for c zone
EPF. employee contribution
EPF Employer contribution
ESIC employee contribution
ESIC employer contribution
Workman compensation for Zone 'C' for each employee
January days are 31
February days are 28
7th March 2013 From India, Mumbai
hi guys
any notification that minimum wages is for 26 days not for 30 days and pf is applicable on minimum wages. kindly mail it to me on
thanks and regards
17th January 2019 From India, Delhi
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