How Do You Break Down CTC for Tax Benefits? Seeking Advice for Salary Structure

Hi Seniors,

Please let me know how do you handle breakups in general? How much percentage can I allot to each component in CTC? When should I consider Basic/Gross salary while doing these breakups?

What are the steps I need to take in favor of the employee so that he can reduce his tax? I am based in Hyderabad.

For example, if I want to break up a candidate's salary of Rs. 50,000 per month, how can I prepare a breakup?

Thanks in advance.

Regards, Emmanuel Gosula Hyderabad.

"I WILL EITHER FIND A WAY OR MAKE ONE"

Hi,

You can break up the components in the following ways:

- Basic
- HRA
- Conveyance
- LTA
- Medical
- Entertainment (Magazines, Newspapers)
- TDS
- Fixed Deposits
- P.F

Hope this will help you out.

Promila

The important breakups in India are Basic + DA (as per government slot) + HRA 40% + Medical Allowances (Tax Exemption 15000) + LTA (Tax Exemption 15000) + Special Allowances. Deduct 12% PF both employers' and employees' contribution along with professional tax (this is as per government slot). Then show net salary and take-home salary.

Hope this information will help you in preparing the salary structure.

Best regards.