Is My 12 LPA CTC Breakup Accurate? Seeking Urgent Feedback from Experienced Peers

Dear Seniors,

I have prepared the attached 12 LPA CTC breakup. Kindly advise whether I have prepared it correctly or not. It's urgent for me, so please help out.

Thank you.

Dear Anony,

Conveyance and Medical Reimbursement have been removed from exemption as per the last budget. Instead, a standard deduction of 40k has been introduced. Therefore, you can remove these two components. Also, you may consider increasing the basic to 40% of CTC. This will raise the HRA limits too, so it will help employees who pay higher for rent.

Rest all looks fine to me.

Regards,
Rahul Chhabra

It seems okay, but my suggestions are:

Basic may fix 40% of the total CTC. Please check whether you are protecting his/her Basic from the previous employer.

Education Allowance is very low.

I think Medical Reimbursement has become fully taxable from this year onwards. Please check.

Hi,

You can provide medical allowances of $1,250 every month (not quarterly) above $15,000, which is taxable. 40% of the basic salary out of CTC can be provided. You can even include DA of 10%, if needed.

Regards,
Tabitha
Bangalore

Dear Tabitha,

Exemption on Medical Reimbursement and Conveyance Allowance has been removed with effect from 1st of April 2018. Please check the latest budget updates.

Regards, Rahul Chhabra

As advised by Mr. Rahul Chhabra, medical reimbursement and conveyance allowance may be shown under the head Special/Other Allowance. You may increase HRA up to 50% of Basic Salary and reduce it from S/O Allowance.

Lastly, correct the spellings of Annexure and reimbursement.

Regards,
Suresh

Hello,

Basic salary should be 40% of CTC, and Rs. 1250 for medical allowance is per month.