Navigating Salary Structures: How Can Employers and Employees Benefit Amid Tax Changes?

Dear All,

What should be the best salary structure that would be beneficial for both the employer and the employee in the context of taxation? Given the recent changes in the last budget, what components should be altered in the salary structure?

Hi,

As per my knowledge, the government has not issued any notification regarding the effective date of changes. Please refrain from providing any tax benefits to your employees before receiving any circulars. The only change in the salary structure head is the Transportation Allowance, which has increased to Rs. 1600 from Rs. 800 per month. However, no circulars are available specifying the effective date.

Regards,
Ashish

Rightly said by the learned member Ashish. The budget has not yet been passed by Parliament. Wait until the budget is passed, and then changes in the salary structure can be considered.

As per my belief, it should remain unchanged except that of T.A. There is no need for any circular as the same thing is visible in salary slips.