Dear Sujan,
While designing payroll you should keep these component in your mind.
1-Basic (40% to 60% of gross)
2-HRA (40 TO 60% OF BASIC)
3-Conveyance allowance (upto 800 is tax exempted)
4-medical reimbursement (upto1250 is tax exempted)
5-Education allowance
6-special allowance{Gross-(1+2+3+4+5)}
7-Gross (1+2+3+4+5+6)
8-PF (if applicable)
9-ESI(if applicable)
10-PT(if applicable)
11-Other deduction
12-net take home {gross-(8+9+10+11)}
13-Bonous/Exgratia
14- LTA
15-CTC [gross+(PF+ESI+Bonous+LTA}
you can also have some other component in gross like petroll reimbursement,meal coupan etc.
Regards,
Bandini.