Salary Break Up - Tax Exemption

versha sharma
Hello every one...
Can anybody please tell me different break up for different salary slab. with more of tax exemption and can i add ex-Gratia component as a part of monthly salary in compensation details...We have deductions for PF nad ESIC also.Hope for the quick response as its urgent..Thanks
ravi5554
Hi,
Versha
First you consider the some salary slabs for Ex;
Salary range between 10000 to 20,000 do band-1
same 20,000 to 30,000 do Band -2
Same 30,000 to 40,000 do Band -3
Now according to this u can design CTC because if you will design CTC for Band-1 and Band-3 same then band 3 Employes will be more taxable.so give more tax exemptions for band-3 Employes.
Hope u may understand this Concept
And Ex-Gratia is part of CTC not Part of Monthly Net salary and its fully taxable component.
versha sharma
Thanks for the reply...can i add special allowance as a part of monthly salary. other than Ex- Gratia. Please suggest salary break-up for 3 different slabs i.e 15000 and below, 15001-30000, 30000 and above.
ravi5554
Hi Versha
For 15000
Basic-7500
HRA- 3000 i have taken 40% but u check for u come under metro or non- metro
Conveyence-1000
Spl.allowance-3500
Spl. Allowance =Gross-All components
For 15000-30000
Basic-15000
HRA-6000
Medical-2500
Coveyence-1000
Spl. Allowance-5500
Now may you got the idea...
ravi5554
Hi,
Versha
In that medical tax exemption is only 1250 remaining amount will be taxable.
May be you know HRA tax exemption rule
Conveyance 800 is tax free and remaining amount is taxable
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