Rajiv505
Chartered Accountant
Pon1965
Construction
Deepmahe
Hr Executive
Deeshachandan
Employee Commmunication
Shanti.dsouza1
Hr Executive
Pawanrke
Facility Management Buisness
+9 Others

Thread Started by #shanti.dsouza1

Hi, I need to design a salary breakup of 29.40 lacs per annum take home and need to make it employee and employer friendly. Please help....
18th February 2012 From India, Mumbai
Hi,
salary braek up for 29.40 will be.....
Breakup of salary:
Basic : 147000(245000*60%)
hra :58800 (basic*40%)
other allowance :39200(difference amnt)
total deductions:
Pf :780
pt: 200
tds:30% per annual income
earned salary-total deductions = [salary payable]
18th February 2012 From India, Hyderabad
as per some company norms they take basic 6500 as basic salary slab 6500 for that pf is 780 some times it may differs from company to company
18th February 2012 From India, Hyderabad
Hi,

For such big amount, CTC has to be structured in such a way that the employee is benefitted max. from tax implications.

I would suggest you to follow the below structure.

1. Basic - 40% of CTC

2. HRA - 50% of Basic in case of metros or 40% of basic for non-metros. Rent receipts can be used for tax rebate.

3. Conveyance - Rs.9600/- p.a. (Alternatively, Fuel & Maintenance charges upto 20,000/- p.m. can be claimed as tax free if he/she owns a 4 wheeler or 5000/- p.m in case of 2 wheeler) If Fuel & Maintenance charges are availed, the conveyance allowance can not be availed.

4. Medical Assisatnce - Rs.1250/- p.m (subject to production of proof)

5. Food coupons - Rs.2700/- p.m tax free

6. Gift Vouchers - Rs.5000/- p.a. tax free

7. Children Edu. Allowance - Rs.100/- p.m. per child (max 2 children) tax free

8. Club Allowance - upto 2L p.a. tax free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates)

9.LTA - upto 2 basics (tax benefit twice in a block of 4yrs, subject to production of Air/Train tkts for self and dependents)

Pon
18th February 2012 From India, Lucknow
Dear Miss. Shanti D. Please find excell sheet for salary break-up. Most of the companies are using this type of salary break up only. It may usefull for u & other members too.
18th February 2012 From India, Bangalore

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dear sir, i want know about pf deduction that does pf conntribution amount taxable amount or not and how much can withdraw pf amount one time in % warm regards, sanju singh
18th February 2012 From India, Hyderabad
Dear respected sir
i had taken 1st manpower contract in a company
in our state minimum wages of unskilled is 3850(basic + dearness amount)
i want to know what will the minimum basic salary of unskilled labour..?
and also want to know value on which i have to calculate esic & pf ..?
Thanks & Regard
Pawan Kumar Dhiman
18th February 2012 From India, Dehra Dun
Hi Mr. Pon 1965,
Bit confused on your post. Could you please clarify the following for me with reference to Income Tax Act and decided case laws?
a) Fuel & Maintenance charges upto 20,000/- p.m. can be claimed as tax free if he/she owns a 4 wheeler or 5000/- p.m in case of 2 wheeler
b) Food coupons - Rs.2700/- p.m tax free
c) Club Allowance - upto 2L p.a. tax free (Health clubs/holiday clubs with ID card and payment receipt can be claimed for tax rebates)
Thanks and Regards,
Divakar
20th February 2012 From India, Bangalore
Hi,
its depand on company to company
likw we have taken a salary of rs 245000
our gross we will be calculated
pf-780
bonus-700
med-474
l.wf-10
total-1964 245000-1964=243036
basic-35%-85063
hra-20%-48607
con-36455
med-24304
spa-24304
cet-12152
ced-12152
20th February 2012 From India, Faridabad
Dear Shanti,
Please find below the Salary Break-up....
Take Home/Annum Take Home/Month
2940000 245000
Basic 1470000 122500
HRA 735000 61250
Telephone 9600 800
Medical 15000 1250
Other Allowance 719760 59980
Gross Salary 2949360 245780
PF 9360 780
Take Home /Month 2940000 245000
Thanks and Regards,
Abhinav Chandra
Plant HR Head
IMT Manesar
Gurgaon, Haryana
21st February 2012 From India, Bangalore
what is the percentage of basic salary for the people who r working in hotel industry , And what is their salary breakup
21st February 2012 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.
23rd February 2012 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
24th February 2012 From India, Gurgaon

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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
24th February 2012 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
25th February 2012 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
25th February 2012 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
25th February 2012 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.
26th February 2012 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
27th February 2012 From India, Gurgaon

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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.
27th February 2012 From India, Delhi
In my opinion, employer's share of contribution to ESI and PF should be part of CTC.
Bonus is 8.33% of Basic. you can restrict the Basic to 3500/-p.m. as per current provisions of Payment of Bonus Act.
Rajiv
27th February 2012 From India, Gurgaon
Yes, it is very much part of CTC. The CTC of 1.80 lacs comprises both PF and ESI (Employer's share only)
Particulars Annual
Basic - 90675
HRA - 36270
CA - 9600
MR - 15000
SA - 0
LTA - 4534
Sub-Total - 156079
Statutory Contributions:
Bonus (Annual) - 3500
Prov. for Gratuity (Annual) - 4359
PF Employer Cont - 9360
ESI - 6702
Sub-Total - 23921
Grand Total - 180000
Deductions:
Gross PF Contribution - 20241
Gross ESI Contribution - 9170
Professional Tax Deposit - 0
Sub-Total - 29411
Net Payable - 150589
27th February 2012 From India, Gurgaon
Please give me a scheme for Fuel and maintenance Charges for employees and how they are taxed
also a scheme for the house provided in the company colony how an employee can be benefited with lower tax
1st March 2012 From India, New Delhi
Hi HR Guys I appriciate all your arguments Normally every company management his own principal to give the salary brakup sheet This is one method to give the breakup of employee Suresh VVN
7th March 2012 From India, Hyderabad

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Dear Rahul Please see this attachment for PF & ESI Still you are any clarification please post the comment. Suresh VVN
9th March 2012 From India, Hyderabad

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Dear Rajiv,
Thanks for sharing this knoweldge with us. I don't know how many would agree but Stautory laws and Payroll Management is a bit to tricky at times unless you understand it throughly. Thanks anyways for sharing.
Thank You!!!
22nd March 2012 From India, Madras
Dear Frnds, I have a query . pls help me. If the monthly CTC is 10976/-, then what would be annual CTC of that person. Pls respond soon. Regards, Deepa
1st August 2012 From India, Delhi
Dear Santhi
Normally CTC is fixed by the management once the ctc is fixed as per the HR policy we need to process.
1 If your company has his ownpolicy to design salary break up dully signed by the authorised person i.e ( Vice resident HR / Managing Director / Chairman like ---------- )
2. According to that we will plan what % we need to fix basic. Once the basic is comlected the remaing we will see as per the act like Income Tax Act, PF Act and other applicable Acts
if yo want the breakp sheet i can give you providing the above info.
Thanks & Regards
V.V.N.Suresh
1st August 2012 From India, Hyderabad
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