Hi,
One of our employees is earning a CTC of 12 lakh. He is paying 10,000 as his tax.Can anyone please tell me some ways to reduce his tax or restructuring the CTC so that his tax liability is minimum?
6 view and no reply....seniors plz help me
From India, Mumbai
15One of our employees is earning a CTC of 12 lakh. He is paying 10,000 as his tax.Can anyone please tell me some ways to reduce his tax or restructuring the CTC so that his tax liability is minimum?
6 view and no reply....seniors plz help me
From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
+4 Others
Hi Miss Perfectionist, Can u tell me dat tax amount (Rs. 10000) is monthly or annualy and discribe the salary structure of 12 lacs. ok
From India, Delhi
From India, Delhi
Hi Miss Perfectionist,
The annexure which you have loaded here, it shows most of the heads are non taxable, but still you can make changes in some of the heads like.. Performance based pay, special allowances and Basic salary..
Instead of giving this much special allowances, you may give him some benefits under FBT, where he will have to pay approx 6.75% of the total amount covered under FBT, it requires deposition of receipts in lieu of that.
The heads which attract FBT are, Petrol Reimbursement, books & periodicals, Entertainment allowance reimbursement, Tour & Travels..
Please add Educational allowances also in your structure, which is exempted for a certain limit upto 2 children.
Regards,
Amit Seth.
From India, Ahmadabad
The annexure which you have loaded here, it shows most of the heads are non taxable, but still you can make changes in some of the heads like.. Performance based pay, special allowances and Basic salary..
Instead of giving this much special allowances, you may give him some benefits under FBT, where he will have to pay approx 6.75% of the total amount covered under FBT, it requires deposition of receipts in lieu of that.
The heads which attract FBT are, Petrol Reimbursement, books & periodicals, Entertainment allowance reimbursement, Tour & Travels..
Please add Educational allowances also in your structure, which is exempted for a certain limit upto 2 children.
Regards,
Amit Seth.
From India, Ahmadabad
Hi,
Check out:
Cost to Company Breakup
Monthly (INR)
Cost to Company
Basic Salary 40000
HRA 16000 Tax free with HR calculation
Conveyance 800 Tax free
Medical Allowance 1,250 Tax free with bills
Food Coupons 1,500 Tax free
LTA 6,667 Tax free
Medical Insurance*1,000 Tax free
Employer's contribution to Pf 4,800 Tax free
Bonus 3,333
Variable Performance Based Pay 15,000 15% of CTC
1000 Ph bill - tax free with bills
200 Education allowance tax free with bills
500 Books and periodicals ,tax free with bills
416.6666667 Gift coupons tax free paid once a year
500 Petrol reimbursement with bills
Special Allowance 7,033
Total 100000
Put this info into proper excel sheet and you will get reduced taxable income.
Thanks
Geeta
From Korea, Seoul
Check out:
Cost to Company Breakup
Monthly (INR)
Cost to Company
Basic Salary 40000
HRA 16000 Tax free with HR calculation
Conveyance 800 Tax free
Medical Allowance 1,250 Tax free with bills
Food Coupons 1,500 Tax free
LTA 6,667 Tax free
Medical Insurance*1,000 Tax free
Employer's contribution to Pf 4,800 Tax free
Bonus 3,333
Variable Performance Based Pay 15,000 15% of CTC
1000 Ph bill - tax free with bills
200 Education allowance tax free with bills
500 Books and periodicals ,tax free with bills
416.6666667 Gift coupons tax free paid once a year
500 Petrol reimbursement with bills
Special Allowance 7,033
Total 100000
Put this info into proper excel sheet and you will get reduced taxable income.
Thanks
Geeta
From Korea, Seoul
Basic must ideally be between 35 to 40% of CTC
HRA 50% of basic
Maximum components must be reimbursements - petrol and maintanance, books & periodicals, medical, LTA, uniform.
However even post this my experince says he can not minimise the tha tds below the amount you have mentioned.
From India, Mumbai
HRA 50% of basic
Maximum components must be reimbursements - petrol and maintanance, books & periodicals, medical, LTA, uniform.
However even post this my experince says he can not minimise the tha tds below the amount you have mentioned.
From India, Mumbai
Dear All,
See Below Must read it really inspirable for all. This is about "A CUP OF TEA"
There was a couple who used to go to shop in the beautiful stores. They both liked antiques and pottery and especially teacups. One day in this beautiful shop they saw a beautiful teacup. They said, "May we see that? We've never seen one quite so beautiful." As the lady handed it to them, suddenly the teacup spoke.
"You don't understand," it said. "I haven't always been a teacup. There was a time when I was red and I was clay." My master took me and rolled me and patted me over and over and I yelled out, "let me alone", but he only smiled, "Not yet."
"Then I was placed on a spinning wheel," the teacup said, "and suddenly I was spun around and around and around. Stop it! I'm getting dizzy!" I screamed. But the master only nodded and said, 'Not yet."
Then he put me in the oven. I never felt such heat. I wondered why he wanted to burn me, and I yelled and knocked at the door. I could see him through the opening and I could read his lips as He shook his head, "Not yet."
Finally the door opened, he put me on the shelf, and I began to cool. "There, that's better," I said. And he brushed and painted me all over. The fumes were horrible. I thought I would gag. "Stop it, stop it!" I cried. He only nodded, "Not yet."
Then suddenly he put me back into the oven, not like the first one. This was twice as hot and I knew I would suffocate. I begged. I pleaded. I screamed. I cried. All the time I could see him through the opening nodding his head saying, "Not yet."
Then I knew there wasn't any hope. I would never make it. I was ready to give up. But the door opened and he took me out and placed me on the shelf. One hour later he handed me a mirror and said, "Look at yourself." And I did. I said, "That's not me; that couldn't be me. It's beautiful. I'm beautiful."
"I want you to remember," then, he said, "I know it hurts to be rolled and patted, but if I had left you alone, you'd have dried up. I know it made you dizzy to spin around on the wheel, but if I had stopped, you would have crumbled.
I knew it hurt and was hot and disagreeable in the oven, but if I hadn't put you there, you would have cracked. I know the fumes were bad when I brushed and painted you all over, but if I hadn't done that, you never would have hardened; you would not have had any color in your life.
And if I hadn't put you back in that second oven, you wouldn't survive for very long because the hardness would not have held. Now you are a finished product. You are what I had in mind when I first began with you."
********
God knows what He's doing (for all of us).He is the Potter, and we are His clay.
He will mold us and make us, So that we may be made into a flawless piece of work To fulfill His good, pleasing, and perfect will.
From India, Delhi
See Below Must read it really inspirable for all. This is about "A CUP OF TEA"
There was a couple who used to go to shop in the beautiful stores. They both liked antiques and pottery and especially teacups. One day in this beautiful shop they saw a beautiful teacup. They said, "May we see that? We've never seen one quite so beautiful." As the lady handed it to them, suddenly the teacup spoke.
"You don't understand," it said. "I haven't always been a teacup. There was a time when I was red and I was clay." My master took me and rolled me and patted me over and over and I yelled out, "let me alone", but he only smiled, "Not yet."
"Then I was placed on a spinning wheel," the teacup said, "and suddenly I was spun around and around and around. Stop it! I'm getting dizzy!" I screamed. But the master only nodded and said, 'Not yet."
Then he put me in the oven. I never felt such heat. I wondered why he wanted to burn me, and I yelled and knocked at the door. I could see him through the opening and I could read his lips as He shook his head, "Not yet."
Finally the door opened, he put me on the shelf, and I began to cool. "There, that's better," I said. And he brushed and painted me all over. The fumes were horrible. I thought I would gag. "Stop it, stop it!" I cried. He only nodded, "Not yet."
Then suddenly he put me back into the oven, not like the first one. This was twice as hot and I knew I would suffocate. I begged. I pleaded. I screamed. I cried. All the time I could see him through the opening nodding his head saying, "Not yet."
Then I knew there wasn't any hope. I would never make it. I was ready to give up. But the door opened and he took me out and placed me on the shelf. One hour later he handed me a mirror and said, "Look at yourself." And I did. I said, "That's not me; that couldn't be me. It's beautiful. I'm beautiful."
"I want you to remember," then, he said, "I know it hurts to be rolled and patted, but if I had left you alone, you'd have dried up. I know it made you dizzy to spin around on the wheel, but if I had stopped, you would have crumbled.
I knew it hurt and was hot and disagreeable in the oven, but if I hadn't put you there, you would have cracked. I know the fumes were bad when I brushed and painted you all over, but if I hadn't done that, you never would have hardened; you would not have had any color in your life.
And if I hadn't put you back in that second oven, you wouldn't survive for very long because the hardness would not have held. Now you are a finished product. You are what I had in mind when I first began with you."
********
God knows what He's doing (for all of us).He is the Potter, and we are His clay.
He will mold us and make us, So that we may be made into a flawless piece of work To fulfill His good, pleasing, and perfect will.
From India, Delhi
This story has a very spacial moral. We must face our difficulty which fell in our way of success. Choose a difficult way because Dar ke Aage Jeet Hai.
From India, Gurgaon
From India, Gurgaon
You can add the tax free components like
conveyance Allowance - 800 PM (Taxfree)
Children Education Allowance - Rs. 1000/- per child (Tax Free)
and Flexible Pay - which is again tax free but is has FBT libilities.
Regards.
From India
conveyance Allowance - 800 PM (Taxfree)
Children Education Allowance - Rs. 1000/- per child (Tax Free)
and Flexible Pay - which is again tax free but is has FBT libilities.
Regards.
From India
Sathish.ctc and income tax planning.xls
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf