Actually, the salary split-up benefits both the company and the employee by allowing for tax exemptions. Components such as HRA, Conveyance, Medical Allowance, Uniform & Washing Allowance, LTA, PF contribution, etc., are exempted as per the Income Tax Act.
Salary Breakup for Bombay
For the salary breakup, as you are from Bombay, please refer to the following (for the financial year 2014-15, as the conveyance & medical allowance limit has increased in the recent Budget for the next financial year 2015-16):
1. Define 50% of Gross as "Basic" = 50,000 (Approximately to consider 1 lakh as gross).
2. 50% of Basic is "HRA" House Rent Allowance = 25,000.
3. Medical Allowance = 1,250
4. "Conveyance" = 800
5. "Uniform & Washing" = 5,000
6. "LTA" can be = 7,500 (Exempted 2 times in a 4-year slab. You need to check the current slab).
7. The other amount can be adjusted into "Other Allowance."
8. PF can be applied at 12% of the Basic salary.
I hope this clears your doubts. Feel free to revert in case of any further queries.
Regards