Flexi Salary Break Up

Hi, can you pls let me know if reducing special allownace in salary break up & increasing basic helps? also whether one should opt for the meal & gift vouchers.
Thanks in advance
ST

Hi,
by reducing speacial allowance and adding the same to basic will have implication on HRA, PF , LTA.
the best idea is to include Sodexo Meal vouchers upto 2500 / month and Rs 5000 gift vouchers per annum. The total tax savings can be upto rs10000. Let me know if I can help you as I know Sodexo people to provide you the best deal.
Regards,
Gautam

Sachin,
Increasing Basic is advantageous for the employees as it will push their savings by way of increased contribution towards PF, Gratuity (in case it is part of CTC). In CTC regime, employers are not going to lose anything due to the increase in Basic as PF PF contribution from both sides are covered under CTC.
Regarding Sodexo or any other food coupons, the limit is 2700/- p.m. in the FY 2011-12 as tax free but it will attract FBT on employer side.
pon

FBT is abolished long back. the entire expense theough meal voucher is an allowable expense for the organization and tax free for the employee.
Regards,
Gautam

hello ,
can someone me help me.if the ctc is 3.2 lac/annum..what is going to be salary break up and how much is going to be in hand.
please help
Zaiba
Sr. HR Executive