How Should I Adjust My Salary Breakup When My CTC Increases? Seeking Advice!

Hi All,

Greetings for the day!

Can anybody help me out with the salary breakup logic? The exempted amount for each component (wherever applicable) is included in the file attached, which represents my current company's salary structure.

- For Conveyance, the exempted amount is Rs. 800 per month.
- For Education Allowance, it is Rs. 200 per month.
- For Medical Allowance, it is Rs. 1250 per month.
- Field Allowance?
- Travel Allowance?
- Club & Recreation?
- Mobile Allowance?
- Mobile Expense?
- Petrol?

If the CTC amount increases, how should the breakup be adjusted? Should the basic amount be increased, or should the amount be added to other components? Please guide me on this.

Regards,
Vimala

Determining Basic Pay Percentage from Gross Salary

How much percentage should be allocated for Basic Pay if the Gross Salary is Rs. 10,000/- or Rs. 8,500/-?

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Hi Vimala,

For club expenses, IT rules say the following:

"The initial one-time deposits or fees for corporate or institutional membership, where the benefit does not remain with a particular employee after cessation of employment, are exempt."

Field allowance is fully taxable. Travel allowance is exempt as per IT rules:

"Any allowance granted to meet the expenditure incurred on conveyance in the performance of duties of an office/employment of profit. Provided free conveyance is not provided by the employer."

Mobile expenses/allowance as per IT rules:

"The benefit of conveyance to and from residence to the place of work, periodicals and journals required for discharge of work, and expenses on telephones, including a mobile phone, shall not be a perquisite."

Regards,
R. Ponraj

Hi friend, how do I calculate the percentages for Basic Pay, DA, HRA, and Special Allowance in total? Please let me know if you need further clarification or assistance.

Regards