Need Urgent Help with Tax-Saving Salary Structure for Senior Employees in India

Hi friends,

I am writing from the UAE. We are a manufacturing company. We do not have any problem paying high salaries to the employees in UAE. However, recently we have recruited 2 higher officials for India. The salary per month will be 1,30,000/- INR. (The company will be incorporated in India, and they will be employees of that company).

I do not have any problem in framing the salary structure for those who will be paid up to 40,000 INR.

Can someone give me the breakup of these salaries in such a way that the CTC shall be 1.30 lakhs, which means it should be inclusive of PF paid by the company also? At the same time, it should be tax-saving for the candidates.

For this candidate, I have given the breakdown as follows... Is it okay, or are any changes required?

- Basic: 50,000/-
- HRA: 20,000/- (1250 limit for metro)
- Conv: 10,000/-
- Medical Allowance: 15,000 (1500 limit per month)
- SPL Allowance: 5,000
- Other Allowances: 10,000

PF will also be added to this.

Since it is very urgent, please help me to frame the salary structure of these senior people for our Indian company.

Regards,

Benance

Dear Benance,

Greetings!

Yearly Grand Totals Monthly

Gross Salary: 130,000 10,833 Basic: 39,000 3,250 HRA: 26,000 2,167 City Compensatory Allowance: 39,000 3,250 Employers' Contribution: 12% of basic or Rs. 780/-, whichever is less: 4,680 390 Conveyance: 9,600 800 Special Allowance: 11,720 130,000 977 10,833

Less: Deductions

P.F. (Employees' Contribution 12% of Basic or Rs 780/-, whichever is less): 4,680 390 P.F. (Employers' Contribution 12% of Basic or Rs 780/-, whichever is less): 4,680 390 Professional Tax: 2,500 11,860 200 980

Net Salary Payable: 118,140 9,853 Add Performance Bonus: 0 118,140

Regards, John N

Dear John,

Thank you for the breakup. I would like to understand the breakdown if the monthly gross salary is one lakh and thirty thousand Indian Rupees (130,000/-INR). This information is needed urgently.

Regards,
Benance

Dear Benance,

Greetings!

As per your posting, I have worked it out for Rs. 130,000 (Gross). Please go through my previous message.

Regards,
John N