Salary Breakup (with Less Tax Deduction

Dear Friends,
Hi, Kindly help me out in desiging the salary breakup so that less tax is deducted. Help me out in selecting the heads for salary breakup.
Thanks in advance
Ritu
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Hi Ritu,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope it must have helped you to clear your queries up to some extent.
Regards,
Amit Seth.

Dear Amit
What is CCA ? City Compensation Allowance?????
If yes then we can even add in another point of Conveyance Allowance which is tax exempt upto 800/- per month right ?
Best Regards,
Tina

Hi Tina..
CCA is city conveyance Allowance.. which is same you are saying.. Actually it is of rs. 825/- which is exempted but because of round figures we do keep it at rs. 800/- only..
Regards,
Amit Seth.

Hi Amit!!!
Was going through the breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer..
Isn't it?
Thanks,
Mansi

Hi Amit!!!
Was going through the salary breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer..
Isn't it?
Thanks,
Mansi

Hello Amit,
Although I am not concern with HR, but have interest to get updated from such things.
Thanks,
[IMG]http://a2.twimg.com/a/1254358647/images/frontpage-bird.png[/IMG]

Hello Amit...
was going through ur posts...really a good & informative one....
wondering if we can be in touch through direct mails it ll be a great journey of learning for me.....
Warm Regards...
Sree....
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Hi Guys..
Please have a discus on this open web, which will help me to know, Pl stop discuss HR related things in Personal INBOX.