Is The Salary Break Up Taxable Or Not? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Vini The Best
Executive Hr
Communication Skills

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Dear all,
I wanted to know that the below break up of the salary which is paid to a person per month is taxable or not? And if the answer is yes than how much tax he needs to pay?

Dear friend,
I recommend you following while deciding the salary components:
a) Please keep the Basic Salary fixed at some percentage like 40% or 45% or 50% as per your choice. Basic percentage should be uniform to all the employees. In the above case, the basic salary is Rs 15,000/- for a gross salary of Rs 32,000/- I think that there is no proper percentage.
b) You are paying Rs 1,600/- as conveyance allowance whereas Rs 1,900/- as transport allowance. How both are different? Can you please explain?
c) You have reserved Rs 2,000/- as special allowance. However, will you pay this special allowance to each employee? If yes, then it would be wrong to do so. Special allowances are paid to the employees, who possess exceptional skills. When others fail to do particular job even after training, there are certain persons who do this with ease. To reward their special ability, they are paid special allowance. Percentage of persons who are special allowance should be minimal or even negligible.
Dinesh Divekar

basic are fully taxable,
Canveyance more than 1600/-per month taxable.
Medical more than 2084 taxable.
HRA 40% in Non metro city and 50% in metro city of basic exempt from tax.
Other or special allowance fully taxable

As per your salary structure, gross payable is 30,100 per month (transport is different, dont consider that,i think it is expenses that are given) and 3.61L per annum.
so who ever(salaried people) receives income above 2.5L they are laible to pay tax, subject to below conditions.
Please make calculations as per below.
TDS calculation:-
PT per annum -2400
HRA exemption (calculate by HRA online calculator or follow HRA rules):- A
Under 80C,80D exemption :-B
Home loan interest:-C
Total D:-2400+19200+A+B+C
Gross Income :-3.61
Taxable income:- Gross -Total D=Example 483101
Follow slab rates
2.5L-5L-5%(Taxable income -250000)
5L-10L-Rs 12500+20%(Taxable income -500000)
Then TDS= 5%(483101-250000)
=11655 per annum
=971 per month round off that to 900.
Depending on the date of joining you should take gross income per annum and dividing 12 per month.
for example if employee joins in may then 30100*11= will be gross
Hope they may help u to some extent.

Dear Radhika Papisetty Mam,
Thanks for your invaluable contribution on the topic. Could you please clarify the undermentioned line and how did you calculate the taxable income as 483101.
Awaiting for your early clarification and thanking you in advance.
Taxable income:- Gross -Total D=Example 483101
Biswadeep Dhar

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