12 LPA CTC breakup prepared by me is correct or not ? Kindly advice - CiteHR
Rahul Chhabra
Hr Professional
Labour Consultant
Dy. Manager (hr)

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Dear Seniors,
I have prepared attached 12 LPA CTC breakup kindly advice whether I have prepared it correct or not.
Its urgent for me kindly help out.

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File Type: docx 12 LPA CTC.docx (21.2 KB, 234 views)

Dear Anony,
Conveyance and Medical Reimbursement have been removed from exemption as per the last budget. Rather a standard deduction of 40k has been introduced. Hence you can remove these two components.
Also, you may consider increasing the basic to 40% of CTC. This will raise the HRA limits too, so will help employees who pay higher for rent.
Rest all looks fine to me.
Rahul Chhabra

It seems ok, but my suggestions are;
Basic may fix 40% on total CTC and check whether you are protecting his/her Basic of previous employer
Edn Allow. is very low
I think Medical Reimb. has become total taxable from this year onwards, pl. check.

Education allowance has a capping of Rs. 100 per child per month, and upto 2 children. Hence the education allowance is not low but as per the IT act.
You can provide medical allowances 1250 every month (not Quarterly) above 15000 is taxable.
40% of basic salary out of ctc you can provide.
You can even include DA of 10% if needed

Dear Tabitha,
Exemption on Medical Reimbursement and Conveyance Allowance has been removed wef 1st of April 2018. please check last budget updates.
Rahul Chhabra

Thanks for update Mr.Rahul

As advised by Mr. Rahul Chhabra, Medical reimbursement and conveyance allowance may be shown under the head Special/Other Allowance. You may increase HRA upto 50% of Basic Salary and reduce it from S/O Allowance.
Lastly correct the spellings of Annexure and reimbursement.

Basic should be 40% of CTC , and 1250 Rs. for medical allowance is for per month .

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