Understanding My CTC Breakdown: How Can I Maximize Tax Exemptions and Minimize TDS?

Please correct if I am right for the below CTC:

CTC: 380000

Basic: Rs. 14249 (45% of gross)
HRA: 5699 (40% of Basic), City is Delhi, Company is Pvt Ltd.
Conveyance: 800
D.A.: 4274 (30% of Basic)
CCA: 2849 (20% of Basic)
Medical: 1000
Spl. Allow: 1700
Other: 1095
-------------------
Total: Rs. 31,666

Please advise me on the maximum exempted slab for this particular matter, and what would be the TDS deduction. Not required to deduct PF & other. If anything is required to add (to save TDS), then also please advise. Your reply will be highly appreciated.

Regards,
Roy

I was thinking of something exactly similar to what Mr. Roy has mentioned.

Any expert advice on that?

Hi Royshanu,

I think in your case, the structure should be as follows: Basic Rs. 190000, HRA Rs. 9500, Conveyance Rs. 800, Medical Reimbursement Rs. 1250, and the balance Rs. 1117 as special allowance. This would be a simple and most tax-saving structure.

Thanks

Hi Royshanu,

I think in your case, the structure should be as follows: Basic Rs. 19,000, HRA Rs. 9,500, Conveyance Rs. 800, Medical Reimbursement Rs. 1,250, and balance Rs. 1,117 as special allowance. This would be a simple and most tax-saving structure.

Thanks

Hi,

Basic - 12667/- (40% of Gross)
DA - 4750/- (15% of Gross)
HRA - 4433/- (35% of Basic)
CCA - 2533/- (20% of Basic)
Conveyance - 800/- (which is exempted from Tax)
Medical Reimbursement - 1250/- (which is also exempted from Tax)
Special Allowance - 5234/-
Gross monthly - Rs. 31666

Regards,
Pushpendra

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[BEST SOLUTION; LOGICAL and legally compliant too.]

Following are the good points:

- HRA for Metros like Delhi is 50%.
- DA has been RIGHTLY eliminated from the proposal, as it could lead to complications if it's not adjusted quarterly for the rise in inflation.
- Conveyance @ Rs. 800 is tax-free.
- Medical Reimbursement @ Rs. 1,250 is tax-free.
- The balance amount of Rs. 1,117 has been given as special allowance.

@jaya_b03: CCA is City Compensatory Allowance.

Warm regards.

CCA: City Compensatory Allowance, which is almost 30% of gross monthly or CTC yearly.

Regards,

Hi, I have calculated HRA & CCA on the Basic Salary which is already indicated in the bracket. Please recheck my post.

Regards,
Pushpendra

I am working in Delhi at a telecom company. I would like to know how to break down my monthly gross salary of Rs. 12,500. Could you please help me with this?

Thank you.

Regards,
Bhawna

Is PF not a part of the CTC? In the question mentioned above, where the CTC is 360,000, will this CTC not include the PF contribution?

Is DA Compulsory in Salary Structure?

Is it compulsory to give DA with reference to any act or rules in general practices? Because in my company (Auto Ancillary), the salary structure (prepared by me) is as follows: Basic (40% of gross), HRA (20% of gross), Conveyance (15% of gross), Medical Reimbursement (5% of gross), EA (5% of gross), and 15% other allowances.

So for Rs. 31,666, it is as follows:
- Basic: 12,667
- HRA: 6,333
- Conveyance: 4,750
- Medical Reimbursement: 1,583
- EA: 1,583
- Other Allowance: 4,750

Is it correct, or do we need any changes?

Regards,
Swati