Can you tell me an ideal breakup for Rs.9,00,000/annum? This is in a tiny company, so no PF. They have asked me to come up with a suitable breakup based on my tax needs. I am a single parent with one child. So I need to maximise my tax savings. I live in a metro..
Would appreciat any assistance you can provide me. Thanks
From India, Madras
pbskumar2006Mr. Prasad ji,
Its very useful and easy preparation of salary breakup. Fine, simultaneously connected with pay sheet, PF return, ESI return is an added advantage.
From India, Kakinada
hemant.hrHi Prakash Thanks for sharing this valuable !! I am not able to understand the calculations, can you give me your mobile no. to understand in better way
From India, Mumbai
Sriparna PalGr8 job. Vry useful ofcourse. To rpatils, PF fund consists of same amount of contribution from employer’s side and employee’s side. So the PF deduction has been shown twice.
From India, Mumbai
knowHRDear Mr Prasad, Can we have a salary breakup which can minimise tax outgo considering common tax saving schemes resorted to by many like sec 80C,HRA and House loan,etc.
VarshaVaishplz tel me one thing on one side we are giving medical n on other side we are talking abt mis. allowance i.e.e pF + ESI pl... tel me
From India, Lucknow
I just tried to make a structure for you:
Total income: Rs.75000 /mth
Basic salary: Rs.47420 /mth
HRA: Rs.14230 /mth
Conveyance Allowance: Rs.800 /mth
Special Allowance: Rs.5000 /mth
Sodexho pass: Rs.2000 /mth
LTA: Rs.24000 /year
Books & periodicals: Rs.6000 /yr
Mediclaim reimbursements: Rs.15000 /yr
Phone reimbursement: Rs.1800 /yr
Total: Rs.75000 /mth
Here in you will have to show investment of Rs.100, 000 and produce bills for entire amount of LTA, B&P, Medical and phone reimbursements. Also, you can buy mediclaim insurance policies for you and your kid (each with an yearly premium of Rs.15000). Also, need to show house rent receipts for Rs.16000 /mth.
After taking into consideration the fixed and reimbursement components and all your investments, the net tax that will be around Rs.4317 per month.
S. KrishnamoorthyDear Gautham,
The correct method of calculation of wages as prescribed by Tamilnadu Government is as follows:
Basic Wages - P/(N-S+H) x No. of days present.
P = Monthly pay
;N = No. of days in a month
S = No. of Sundays
H = No. of holidays
Monthly pay Rs.3500/-
No. of days in the month: 31
No. of Sundays in the month: 5
No. of holidays (Mandatory) in the month: 1
No. of days present: 24 (absent 1 day) (if it is casual leave then it is 25)
=3500/31 - (5+1) x 24
= 3500/25 x 24
If the no. of days present is 25:
= 3500/25 x 25
I trust that this meet your need.
From United States, Roslindale
thankyou for the breakup. I am a hr in a small company in mumbai. I am currently following a salary break up here,due to which employees are ending up paying huge pf as a result, they get less money in hand. below is the structure that we are currently following;
gross - (ctc-employer's pf)
basic pay - 50% of gross
hra - 25% of gross
medical - 10% of gross
conveyance - 9% of gross.
now, due to basic pay being 50% of gross, it attracts more pf. I need you to help me re structure the salary so that employees get less pf deduction and more money in hand. let me know if we have to add other components like fbp, special allowance, lta etc to achieve this.
awaiting your response.
From India, Hyderabad
Is there any system in Payroll Structuring where an employee can be allowed to customize his/her own pay with keeping the same CTC. or can a company have a flexible salary structure to accomodate different sets of employees?
Requesting all memebers to help me with their valuable suggestions.
From India, Mumbai