Help To Design Salary Structure Format Without PF Component

Hi Raj,
As per my knowledge, we should keep Conveyance allowance fixed - 800 pm and Medical allowance as 1250pm as 15K is exempted from tax annually for medical reimbursement part. Education allowance i believe is fixed up to 200pm.
Rgds
Lakshmi

Hi Raj/Lakshmi,
Lakshmi u are right, except education allowance.
Conveyance allowance is exempted from tax upto Rs. 800 pm subject to actual spending on official purposes.
Education Allowance is exempt upto Rs. 100 pm per child upto max of 2 children.
medical allowance is exempted upto Rs. 15000 per ANNUM subject to actual expenditure.
I have a query: there is a difference between medical reimbursement and medical allowance. I went through posts in citeHR but didn't quite understand. SENIORS can u put some light on this?
Regards,
Satarupa

Dear laxmi,
Thanks for your good suggestion’
I also know the norms of income tax exemption but my question is that have any restriction for amount. jus for example we give the more amount in this all heads like Conveyance allowance is rs 1200/- in this amount rs 400/- is as a taxable income. Are we able for made this type salary structure?
Regards,
RAJ PANDEY

Dear Lakshmi,
On the Meal Voucher. There is a limit as precribed by the IT act. Please have the Finance accountant involved in your final decision, or else your company will be caught by IT.
Regards
Ukmitra

Please go through the entire discussion. You may find the right answer related to your query.