I need your help as i have to restructure the current compensation band for my organisation.i want a good structure which will be tax beneficial too.
Currently the structure is
CTC - Conveyance allowance according to the level of employee= Gross salary
Basic = 50 % of gross
Hra = 50 % of Basic
Medical= 30% of Basic
Other allowance = rest amount
I have projected with :
Basic= 50% of gross
HRA=50% of basic
TA= 800
LTA=10% of gross
Sodexho= 1500
Other allowance=rest amount
Help me with your suggestions
Manisha Singh

From India, Delhi
Hi Manisha, Everything is ok. But the % of basic should be 40%. U haven’t mentioned anything about deduction in salary structure.
From India, Madras
Thanks a lot for your reply...as far as deduction concern.
PF, ESI, TDS these are the deductions.
Kindly update me if i can implement some more thing into my salary restructuring part.
If i will take 40% basic will it be beneficial for tax coz any how rest amount will be added into special allowance.
Thanks & Regards
Manisha Singh

From India, Delhi
Dear Manish,
Basic should be 40%,its mandatory. Special Allowance is fully taxable.
Special benefits is not there as ur basic is high, HRA will be high, so tax will reduce ad viceversa.
In deduction side, you can also deduct Professional tax.

From India, Madras
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