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Dear Anand,
As rightly said by the senior members,Gratuity is not considered to be a part of the CTC as gratuity is applicable to a person only after he completes five years in the organization........... the gratuity calculation can thus be written separately for the employees understanding.
Thanks and Regards
Ravibhushan Pandav
Human Resources Officer
9970967623

From India, Pune
Hi... i think this will help you out
SALARY BREAK UP


GROSS SALARY BASIC H R A CONVEYANCE OTHER ALLOWANCES
8001 AND ABOVE 40% 10 % OF GROSS 800 REST AMOUNT
7000 TO 8000 50% 10 % OF GROSS 400 REST AMOUNT
6000 TO 6999 60% 0 0 40% OF GROSS
5000 TO 5999 70% 0 0 30% OF GROSS
4000 TO 4999 80% 0 0 20% OF GROSS
3600 TO 3999 90% 0 0 10% OF GROSS
BELOW 3599 THE STAFF WILL BE KEPT AS A CASUAL STAFF

From India, Indore
Urgent answer to this question required:
Can LTA be provided on a monthly basis as part of the salary structure or is it supposed to be given quarter wise or smthng??? Please throw some light on this too...

From India, Delhi
Dearest Vidhi,
Yes LTA can be shown on a monthly basis as a part of the CTC when your constructing it..................! But LTA cannot be given on a monthly basis,it is given on a Yearly basis after an employee completes one year.
1months basic = LTA.I hope you have got your answer.
Thanks and Regards
Ravibhushan Pandav
Human Resources Officer
9970967623

From India, Pune
Dear Mr. Pandav
Thank U so much for your inputs. Can u help me with making a tax friendly salary structure and what all components can I introduce in it other then Basic,HRA, Conveyance Allowance, and Medical Allowance.
Waiting for your suggestions
Regards
Vidhi

From India, Delhi
Dearest Vidhi,
According to the requirement of the company and the designation for which we are constructing a salary depends upon the top management of the company.........There r 2 possibilities 1) either the company has a fixed salary structure for individual grades existing or 2) The company produces a salary structure according to the capabilities,qualifications,experience and skills of an individual......
So a Low tax or a Tax free salary structure is not possible,u cannot provide an experienced person low salary only because of the reason that u will pay less tax or no tax............! tax is applicable for an individual if his/her annual income is more than 1,80,000.........! so anyhow the individual has to pay tax depending on his salary.............! So i will request you to please remember that you can only reduce on companies share of statutory compliances which it pays for its employees and not on tax........! yes......! as far as an individual goes he will definitely find ways for tax exemption on his personal means which is that individuals problem afterall..............! i hope i have answered your question satisfactorily.
For any further clearance and queries plz stay in touch.

Thanks and Regards
Ravibhushan Pandav
Human Resources Officer
9970967623

From India, Pune
Dear Mr. Pandav,
Thanks again for clearing the doubts, yess Income tax is a given which the employee has to pay however I would like to know other than (previously said) salary components wat other allowances or factors can I introduce in the salary structure.
One more query what is special allowance and personal allowance, Is there any income tax levied on them, if yes then how much is it... on what basis is it calculated.
Regards
Vidhi

From India, Delhi
Dearest Vidhi,
Income Tax is levied on your total Gross Earnings Per annum.........! so it is not the componants of the payroll which are taxable,It is the total Gross Earning per annum which is..........! The salry structure can have the following componants.
Basic,DA,HRA,Conveyance,Special Allowance & Personal Pay
Hope i have answered your questions to your satisfaction.
Apart from that if u want to construct a CTC please also add PF,ESIC,Uniform,Telephones,LTA& Medicals to the Salary Structure to get the final CTC.
Thanks and Regards
Ravibhushan Pandav
Human Resources Officer
9970967623

From India, Pune
Tax is not on total gross earnings but on taxable gross earnings. Some components like HRA (rent paid in excess of 10% of basic as applicable to metros and non-metros), CEA, Medical Assistance (subject to production of bills), Conveyance allowance are set aside from the total gross earnings while calculating the taxable gross earnings.
pon

From India, Lucknow
Dear Mr Pon,
Please read my explanation once again........! i have stated Total Gross Earnings Per Annum.No componant of the Salary Structure is taxable on an annual basis,but gross on an annual basis is taxable..............! please make sure LTA,Medicals and other allowances if claimed once in two years does not incur tax at all..........!
For any further assistant plz be in touch
Thanks and Regards
Ravibhushan Pandav
Human Resource Officer
9970967623

From India, Pune

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