Confused About My Take-Home Salary Offer – What Should I Ask HR?

Hi, can anyone help me with this?

I have been offered a job with a fixed pay of 15.6 lakhs. Below are the details of the breakup:
- 5 lakhs basic
- HRA 2.5 lakhs
- Special allowance 7 lakhs
- LTA 50k
- PF 60k

Can anyone tell me how much I will get in hand and suggest any questions that I should ask the HR about?

Dear Satya,

Since the amounts shown under the heads L.T.A and contribution to P.F. are fringe benefits, your take-home salary would be the aggregate of the other items minus your contribution to E.P.F. and T.D.S.

Hi,

According to me, you will receive an amount of 14.5 in hand, as PF and LTA would be reimbursed after a certain period. It would be beneficial if you could ask your HR about the benefits and allowances included in the special allowance. Seniors can provide you with more clarity as well.

Dear Satya, your total earnings per year are taxable. Therefore, it is necessary to know about your income tax saving plan (LIC Premium, NSC, Tax-saving FD, PPF, etc.), house rent if any, the amount of PF & PTAX that will be deducted at the source, and so on to arrive at your actual take-home salary. Moreover, whether all the components will be paid on a monthly basis or any other basis will also be required. Try to enhance your basic idea about income tax; otherwise, being a taxable employee and with rules changing every year, you will be in trouble.

Thanks & Regards,
S K Bandyopadhyay
USD HR Solutions
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Hi,

The gross monthly salary may be somewhere around 1.2L per month, less taxes, which depends on the savings, loans, etc. You are eligible for a standard deduction of 40k per year, housing loan interest, etc., apart from the 150k on long-term deposits/savings like LIC, etc. You also have a 50k exemption if you have NPS savings. Tax experts may be able to shed light on how to save the maximum while paying your taxes.

Thanks and Regards

Dear Satya,

Please check the attached Annexure A for your salary calculation.

Regards, Suresh