How to Break Down a 12 Lakh CTC for a General Manager and Minimize Tax Liability?

Hi,

Could somebody please help me with a salary break-up for a CTC package of Rs. 12 lakhs per annum (1,00,000 per month with 90,000 per month fixed and 10,000 per month related to performance payable quarterly in installments of 30,000 each)? This is for a General Manager position in a small enterprise, which does not yet have 20 employees, therefore EPF and Gratuity are not applicable.

Also, how can the income tax liability be minimized considering an investment of Rs. 1,10,000 in ELSS, PPF, and LIC?

Would really appreciate the inputs.

Regards,
Narry

Hello,

Tax planning on an annual CTC of Rs. 100,000.00. The employer has to agree with the following salary break-up and can help minimize the tax burden of the employee:

Basic Salary: 48000
HRA (60%): 28800
Vehicle Maintenance: 9000
Children Education Allowance: 200
LTA (Take it once in two years block): 4000
Total: 90000

Less: Exemption
Against rent receipt in metro city: -24000
Children education (Rs. 100 per child): -200
Vehicle maintenance - produce bills: -9000
Taxable salary per month: 56800 * 12 = 681600

Less: Rebate
Ag premium paid for medical insurance up to: -15000
Investment in various saving schemes: -100000

You can plan for a housing loan as well, making your taxable salary now: 566600

Thank you.

Mr. Pandey,

I downloaded the tax calculator for the year 2006-07 designed in a spreadsheet, i.e., MS Excel. I just want to know from your end, if I input the figures against the selected fields, can I get the last figure automatically or have to calculate manually? I am yet to test it, but I may be clarified. Also, let me know if you have prepared the tax calculator for the year 2007-08. If so, kindly send it to me for reference. Thank you and hope to receive information in respect of the above.

[Biswajit Pani]
e-mail ID: bjpani@gmail.com

Mr. Pandey, the information shared is wonderful and of great help. Can you also help with the same for 2007 - 2008? You can either put it here or email me at [Login to view]. Thanks once again.

Hi, can somebody please help me with a salary break-up for Rs. 38,300 per month? I get Rs. 3000 per month as incentive earning. This is for a Veterinary Officer position in an Animal Welfare NGO in Delhi, having 42 employees, and I do not get EPF and Gratuity. Also, how can the income tax liability be minimized considering an investment of Rs. 1,10,000 in ELSS, PPF, and LIC?

Would really appreciate the inputs.

Dr. Prabhakaran Palanichamy

Hi,

I have just been offered a package of 30 Lacs as fixed with 5 Lacs as PLI (Performance Linked Incentive). I need the most tax-saving breakup of this CTC to negotiate with. The components mentioned are basic, LTA, Medical, car, Driver, Conveyance, special allowance, Medical Insurance, PF, Gratuity, and Bonus.

This is urgent. Please help.

Thanks