How Can I Minimize Tax on My New Job Offer in India with CTC of Rs 1,00,000?

I am currently working in Bahrain (GCC) and I have received an offer from India for Rs 1,00,000 per month CTC, along with a vehicle with a driver, mobile phone, and Rs. 3,00,000 per annum as a performance incentive upon achieving the target. The incentive would be on a quarterly basis but would not be carried forward; in other words, if the target is not achieved in a quarter, it lapses. Additionally, they have offered Rs 45,000 per month for my wife. We plan to reside in our own house near the company's location, and we have no outstanding housing loans. The company is engaged in engineering manufacturing.

As we are not updated on the latest IT regulations, it would be greatly helpful if you could suggest a salary breakdown for the aforementioned CTCs with the minimum possible tax implications. The company has not provided us with the breakdown, and it is to be mutually agreed upon.

Decide 40% as basic & 60% other allowances. HRA- 50% of basic in case of metros or 40% in non-metros Medical - 1250/- p.m Children Edu allowance - 100/- per child p.m Conveyance allowance - 800/ p.m Food coupons - 1350 p.m

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Decide 40% as basic and 60% as other allowances. HRA is 50% of basic in metros and 40% in non-metros. Medical allowance is Rs. 1250 per month. Children's education allowance is Rs. 100 per child per month. Conveyance allowance is Rs. 800 per month. Food coupons amount to Rs. 1350 per month.

Sir,

I am a fresher, and I calculated this for the first time. Please go through and tell me your comments/corrections. Please.

Thank you.

Dear Chaitanya,

Please don't mention the bonus amount from the employee's salary/CTC.

Regards,
Charvaka Reddy

Dear Sir (Charvaka),

Can you please correct the mistakes and attach them back to me so that I can learn how to do that? Please, sir.

Thank you.

Hi,

You can go with:
- Basic: 35-40% of CTC
- HRA: max 50% of Basic
- Spl. Allowance: 8-12% of CTC

Hence, Gross will be approximately 65-75%. The rest can be on a reimbursement basis to reduce the tax liability.

Dear Friend,

Kindly remove ESIC from the CTC as the salary is more than Rs. 15,000/- per month.

Regards,
Satish Kumar