Asst.manager -hr
Accounts Manager
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Salary Break-Up
Hi Friends,
I have recently joined a Gurgaon-based company as an executive in its HR Deptt....
I have been given an assignment of presenting a salary break-up of Rs 22 Lac per annum (CTC)...
I would highly appreciate if someone helps me in suggesting the ideal break-up such that employee has the lowest tax liability...
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Thanks Mr Aditya for your inputs. Can you please make an ideal salary break-up for me for a CTC of 22 Lac per annum.? I would highly appreciate if you could do this favour to me.. Regards Ashwani
Dear Ashwini, You can show the Helper Allowance also. This is tax free subject to supporting documents. Ramakant
Dear Murgan, My question will raise on your answer, as you told that Ex-Gratia amount to be add in salary break up but that is fully taxable amount then what is the need to pay Ex-Gratia.
Dear Ramakant, Helper allowances is taxable, if helper is used for official purpose then its exempted.
Hello Ashawany,
If you have already joined the company, then the salary break up must have been given in your offer of appointment letter. The company might have offered you some option to change the component within the CTC. So you supply the salary break up offered to you so that further advice may be given to you to save the income tax leviable upon you.

The first thing that you have to clarify here is whether it is the CTC or Gross Salary or Net Salary?
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As you mentioned 22 lac per annual
1. Try to give them basic and special allowances components as lesser as possible, because both are fully taxable.
2. Give them HRA Component because its highly tax saving component in salary strucher
3. give other components(like....company car,sodexho,medical,telephone,meal allowances,uniform expenses)
4. Using company car instead of using own car its highly tax prerequisite in taxation.
5. investing under section 80(C)- upto 1 lac you can save tax.
6. section 80D ( medical insurance)
7. Section 80G ( Donations)
in this way you can save maximum part of the tax amount.
Hi Ashwani,
Here is one of the possible salary break up for 22 lakh that I feel could help:
Calculate In Hand Or Take Home Salary Calculator For India: AM22 Applications
You can pretty well change the input values directly in the calculator link above and play with various values.
Also, please note that the actual take home depends a lot on the individual's tax saving investments.
Let me know if you need more clarification.
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