Hi Please send the sample salary breakup for overall CTC of Rs. 5 LPA (in excel sheet). What are the points to be taken care w.r.t. basic and HRA calculation? (Standard Format)
From India, Hyderabad
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From India, Hyderabad
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Sure, I'd be happy to help you understand how the salary breakup could be structured for an overall CTC (Cost to Company) of Rs. 5 LPA (Lakhs Per Annum).
Please note, this is a simplified general example, and the exact breakup can vary based on company policies, employee grade, etc. The calculations are made assuming that the person does not have any other income:
1. Basic Salary: It is usually 40-50% of the CTC. Assuming it is 50% for the ease of calculation, the basic salary will be Rs. 2.5 Lakhs per annum.
2. House Rent Allowance (HRA): This is generally 40-50% of the basic salary in non-metro cities like Hyderabad. So, it will be Rs. 1 Lakh per annum in this case.
3. Provident Fund (PF): Both the employee and employer contribute to the PF. The contribution is 12% of the basic salary which comes to Rs. 30,000 in this case.
4. Conveyance Allowance: This is given to meet travel expenses, and the limit set by the government is Rs. 19,200 per annum.
5. Medical Allowance: This allowance is given to meet the medical expenses and it is usually Rs. 15,000 per annum.
6. Leave Travel Allowance (LTA): This is the amount given to an employee to cover travel expenses when he is on leave. In our case, let's assume it as Rs. 20,000.
7. Other Allowances: The balance left from CTC after adjusting all the above heads is considered as Other Allowances. This would be Rs. 1,15,800 in our case.
Here is the breakdown:
- Basic Salary: Rs. 2,50,000
- HRA: Rs. 1,00,000
- PF (Employee Contribution): Rs. 30,000
- Conveyance Allowance: Rs. 19,200
- Medical Allowance: Rs. 15,000
- LTA: Rs. 20,000
- Other Allowances: Rs. 1,15,800
- Total: Rs. 5,00,000
Points to be taken care of with respect to Basic and HRA calculation:
- Basic Salary: It is the largest portion of the salary and impacts your PF contributions and tax liability. Remember, a higher basic salary can lead to higher PF contributions and lower take-home pay.
- HRA: It is exempt from tax to a certain extent under Section 10 of the Income Tax Act. The exemption is the least of:
a. Actual HRA received
b. 40% of Basic (50% in case of metro cities)
c. Rent paid minus 10% of Basic
I hope this helps you understand the salary breakup. However, please note that each organization may have its own salary structure, which could be slightly different from this.
From India, Gurugram
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54Please note, this is a simplified general example, and the exact breakup can vary based on company policies, employee grade, etc. The calculations are made assuming that the person does not have any other income:
1. Basic Salary: It is usually 40-50% of the CTC. Assuming it is 50% for the ease of calculation, the basic salary will be Rs. 2.5 Lakhs per annum.
2. House Rent Allowance (HRA): This is generally 40-50% of the basic salary in non-metro cities like Hyderabad. So, it will be Rs. 1 Lakh per annum in this case.
3. Provident Fund (PF): Both the employee and employer contribute to the PF. The contribution is 12% of the basic salary which comes to Rs. 30,000 in this case.
4. Conveyance Allowance: This is given to meet travel expenses, and the limit set by the government is Rs. 19,200 per annum.
5. Medical Allowance: This allowance is given to meet the medical expenses and it is usually Rs. 15,000 per annum.
6. Leave Travel Allowance (LTA): This is the amount given to an employee to cover travel expenses when he is on leave. In our case, let's assume it as Rs. 20,000.
7. Other Allowances: The balance left from CTC after adjusting all the above heads is considered as Other Allowances. This would be Rs. 1,15,800 in our case.
Here is the breakdown:
- Basic Salary: Rs. 2,50,000
- HRA: Rs. 1,00,000
- PF (Employee Contribution): Rs. 30,000
- Conveyance Allowance: Rs. 19,200
- Medical Allowance: Rs. 15,000
- LTA: Rs. 20,000
- Other Allowances: Rs. 1,15,800
- Total: Rs. 5,00,000
Points to be taken care of with respect to Basic and HRA calculation:
- Basic Salary: It is the largest portion of the salary and impacts your PF contributions and tax liability. Remember, a higher basic salary can lead to higher PF contributions and lower take-home pay.
- HRA: It is exempt from tax to a certain extent under Section 10 of the Income Tax Act. The exemption is the least of:
a. Actual HRA received
b. 40% of Basic (50% in case of metro cities)
c. Rent paid minus 10% of Basic
I hope this helps you understand the salary breakup. However, please note that each organization may have its own salary structure, which could be slightly different from this.
From India, Gurugram
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SALARY SHEET CALCULATION.xls