Understanding Non-Taxable Salary Components: Can You Help Clarify My Pay Breakdown?

Hi,

Can anyone help me out in knowing the non-taxable components of salary? For example, my organization is planning to give salary in the following format:

Total Salary - 6000 per month
Basic + DA = 3000
Conveyance Allowance = 500
Special Allowance = 2000
Attendance Bonus = 200
Consulting fee component (since it's a hospital, only to doctors) = 300

In this, I know the conveyance allowance limit is 800. Are the remaining components such as Basic + DA, Special Allowance, Attendance Bonus, Consulting Fee, etc., taxable?

I hope seniors will guide me in this matter.

Regards,
Arun R

Dear Arun,

Find below one of the salary break-ups that you may use as a reference.

The contents of the salary break-up are as follows; you can customize it to suit your needs. HRA would be 50% or 60% of the basic salary.

- Basic
- HRA
- CCA - ₹825/- is exempted from tax
- Other Allowances
- Mobile Reimbursement
- Medical Reimbursement of ₹1250/month is tax-exempt
- 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 medical facility provided to employees not covered under ESI, as the maximum ESI ceiling is ₹10,000/month. Amounts exceeding this will be covered under Mediclaim or as per company policy.
- Ex-Gratia/Bonus = Fixed amount as Bonus
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also known as CTC.

In addition to the above, Food coupons, Holiday packages, and Furnishing items are included in their CTC.

I hope this information helps clarify your queries to some extent.

Regards,
Amit Seth.

There are two concessions given in the Act which are as follows: Exemptions and Deductions.
For our purpose, we treat both exemptions and deductions in the same manner.
I. Exemptions:
HRA - Sec 10(13A)
Conveyance Allowance -S.No. 10 of Rule 2BB(2) read with Sec 10(14) (i)
HRA - Sec 10(13A).
Housing is a basic necessity for living and a portion of the Salary Income, which is utilised for renting a house, is exempted from tax, with some conditions.
The conditions are : 50 % of Basic
Actual HRA received from the company
Actual Rent paid minus 10% of Basic
Least of these three will be deducted from salary for the purpose of tax calculation.
Conveyance Allowance – S.No. 10 of Rule 2BB(2) read with Sec 10(14) (i): Rs.800/- p.m. will be exempted from Income for Tax Computation. This is for basic conveyance between home and place of work.