Hi everyone,
I am new to this field. Today, my boss asked me to prepare a CTC breakup for 22 Lakhs for the employee. My boss also asked me to prepare a CTC where the company has to pay low TDS. Please help me. If anybody has a CTC Breakup/Salary slip for 22 Lakhs, please provide me ASAP. Thanks in advance.
From India, Bengaluru
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1I am new to this field. Today, my boss asked me to prepare a CTC breakup for 22 Lakhs for the employee. My boss also asked me to prepare a CTC where the company has to pay low TDS. Please help me. If anybody has a CTC Breakup/Salary slip for 22 Lakhs, please provide me ASAP. Thanks in advance.
From India, Bengaluru
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To prepare a CTC breakup for 22 Lakhs with the aim of minimizing the TDS (Tax Deducted at Source), you need to understand the components that make up the CTC (Cost to Company) and how they are taxed. Here's a practical guide to help you achieve this:
Step-by-Step Guide:
1. Understand CTC Components: Break down the employee's CTC into various components such as Basic Salary, House Rent Allowance (HRA), Special Allowances, Provident Fund (PF), Medical Allowances, Leave Travel Allowance (LTA), etc.
2. Tax Planning: To reduce the TDS burden on the employee, focus on structuring the components in a tax-efficient manner. For example, consider increasing the HRA component if the employee pays rent, as HRA is partially exempt from tax.
3. Optimize Reimbursements: Encourage the employee to submit bills for reimbursements such as telephone, internet, fuel, etc., which can be tax-free up to a certain limit if supported by bills.
4. Utilize Tax-Free Components: Ensure the employee fully utilizes tax-free components like LTA and Medical Allowances wherever applicable.
5. Investment Declarations: Guide the employee to declare investments under Section 80C (like PF contributions, Life Insurance premiums, etc.) to reduce taxable income.
6. Flexible Benefits: Consider offering flexible benefits to the employee, allowing them to allocate a portion of their CTC to components that are tax-efficient for them.
7. Professional Advice: If needed, consult with a tax expert or financial advisor to optimize the CTC structure for tax efficiency while ensuring compliance with relevant laws.
By following these steps and customizing the CTC components based on the employee's tax-saving goals and preferences, you can create a CTC breakup for 22 Lakhs that minimizes the TDS impact while maximizing the take-home pay for the employee.
From India, Gurugram
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Step-by-Step Guide:
1. Understand CTC Components: Break down the employee's CTC into various components such as Basic Salary, House Rent Allowance (HRA), Special Allowances, Provident Fund (PF), Medical Allowances, Leave Travel Allowance (LTA), etc.
2. Tax Planning: To reduce the TDS burden on the employee, focus on structuring the components in a tax-efficient manner. For example, consider increasing the HRA component if the employee pays rent, as HRA is partially exempt from tax.
3. Optimize Reimbursements: Encourage the employee to submit bills for reimbursements such as telephone, internet, fuel, etc., which can be tax-free up to a certain limit if supported by bills.
4. Utilize Tax-Free Components: Ensure the employee fully utilizes tax-free components like LTA and Medical Allowances wherever applicable.
5. Investment Declarations: Guide the employee to declare investments under Section 80C (like PF contributions, Life Insurance premiums, etc.) to reduce taxable income.
6. Flexible Benefits: Consider offering flexible benefits to the employee, allowing them to allocate a portion of their CTC to components that are tax-efficient for them.
7. Professional Advice: If needed, consult with a tax expert or financial advisor to optimize the CTC structure for tax efficiency while ensuring compliance with relevant laws.
By following these steps and customizing the CTC components based on the employee's tax-saving goals and preferences, you can create a CTC breakup for 22 Lakhs that minimizes the TDS impact while maximizing the take-home pay for the employee.
From India, Gurugram
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Salary less tax - CTC.xls
Typical salary breakup.jpg