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what is the percentage of basic salary for the people who r working in hotel industry , And what is their salary breakup
From India, Madras
Dear All,
I am woking for a company X1 and X2, both are sister concerned componies
My salary breakup is as follows
From Company X1
Basic : 41000
Conveyance : 3500
HRA : 12500
PPF : 4100
Medical Allowance : 3500
LTA/ Driver Alloance : 2900
Total : 67500
Deductions : 61500
Net Pay : 61350
From Company X2
Salary : 47500
Deductions : 14750
Net Pay : 32750
Kindly give my a salary break up for a which benefites me ( to save tax ) and my employer.

From India, Hyderabad
Presuming that your annual income is 13.80 L (67500+47500)x12, find enclosed the suggested pay structure. You can try more options at provided weblink.
Just remember following things:
Employer's Contribution to PF is exempt from Income Tax
your contribution to PF is deductible u/s 80C (max 1 lac)
Gratuity is taxable in the year of receipt and that also with certain exemptions, whereas employer shall get the expense deductible in the current year only.
Medical reimb. exempt upto 15000 p.a.
LTA exempt upto 15000 p.a.
Convey allow exempt utp 9600 p.a.
HRA is also exempt depending upon actual rent paid by you.
Rajiv

From India, Gurgaon

Attached Files
File Type: pdf PS.pdf (170.9 KB, 102 views)

Dear BMandBM
Most of the tax saving allowances work best for salary within 2-4 lacs p.a..
At higher salary, only HRA saves some money. if you live in metro city, make it 50% of Basic, otherwise 40% of Basic.
Higher contribution of PF (both employer and employee) also saves taxes as it is fully exempt.
Children education allowance (max 2400 p.a. for 2 children), hostel allowance (max 7200 p.a. for 2 children), Transport allowance (max 9600 p.a.), Med Reimbursement (max 15000 p.a.) , LTA (actual spent) can also save some peanuts.
Rajiv

From India, Gurgaon
Dear Rajiv,
People talk about food/gift vouchers/uniform/ driver/ vehicle/petrol allowance.
If these allowance are introduced can I save some tax, if yes please provide the detials in what way it can be done
Regards
BMandBM

From India, Hyderabad
BMandBM

See, anything given in form of fixed allowance is taxable besides the ones I mentioned in my earlier post.

Food vouchers



The rule (Rule 3(7)(iii)) states that value of free food and non-alcoholic beverages or meal vouchers provided by the employer is exempt from income tax to the extent of Rs. 50 per meal. Please note that the tax exemption is to be calculated on a per-meal basis and not on a per-month basis. Many organizations provide meal vouchers to the extent of Rs. 3,000 per month and not calculating any tax on the same. Some payroll managers argue that Rs. 50 per meal translates into Rs. 100 per day (assuming two meals per day) and finally into Rs. 3,000 per month (for 30 days) and hence meal vouchers are exempt to the extent of Rs. 3,000 per month.

In addition, the meal vouchers issued to employees should be non-transferable and used only in eating joints. Since tax exemption is restricted to Rs. 50 per meal, payroll managers would do well to issue meal vouchers only in Rs. 50 (or less) denomination. Issuance of meal vouchers of higher denomination (say, Rs. 100) may attract tax.

At the end of each month, payroll managers should make note of loss of pay and other leave days (Casual Leave etc.) of employees and correspondingly calculate the perquisite value for the meal vouchers issued.

Gift Vouchers

Regarding Gift vouchers, as per my knowledge the same is exempt for gift below Rs. 5000/- p.a.

Uniform allowance and Professional Journal allowance is exempt from tax to the extent expense has been incurred.[sec 10(14) read with rule 2BB]

Driver/Vehicle/petrol etc, if given as allowance, will be fully taxable. However, if the company gives a chauffeur driven car, same is taxable/exempt as perquisites u/s 17 upto certain limits depending upon the car cubic capacity.

Rajiv

From India, Gurgaon
Dear Friends,
I have a query on Salary break up.
Though Basic and DA Accompany in Basic, and then comes HRA, CA, MA, Other Allowances.
But I would like to know bifurfication of Basic and DA. How we will bifurcate and enter in payroll software individual break up.
I will appreciate if somebody brief me with an example.
Thanks
Deepa

From India, Delhi
Dear All,
I am a student, can you pls help me to understand Salary Break up.
1. how to calculate basic of salary start from 15k n up?
2. HRA
3. Conveyance
4. PF
5. Medical
As per Law, Salary till 15k n less comes under in ESIC act. how to calculate esic for the same.
I really am hoping if any one can provide me a complete guide/tutorial on the same.
Thanks.

From United Kingdom
Priyanka
Attached are salary breakups for salary of 1.80 lacs and 2.20 lacs p.a.
The former comes under ESI and the latter is out of its purview.
You can try more options at the provided weblink.
Rajiv

From India, Gurgaon

Attached Files
File Type: xls PS.xls (20.0 KB, 104 views)

Dear All, I want to make it clear that is ESI and PF Contribution of Employer is a part of CTC of an employee. How to calculate bonus in CTC. Please respond soon.
From India, Delhi

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