Starting a Company: How Do We Break Down Salaries and Handle Taxes Like TDS?

Sir, actually, we have started a private limited company and appointed a sales team including NSM, ZSM, ASM, TSM, and promoters. For example, if we offer a gross salary of 50,000 INR per month, how should we calculate the breakup? What would be the professional tax amount? Is TDS applicable in this case? Kindly provide urgent details.

Hello there,

CTC should be prepared on the basis of tax-saving for employees and employers. So, in your case, if the gross is $50,000, the CTC is given as follows:
- Basic: $22,000 (cannot be exempt from tax)
- HRA: $11,000 (exempt from tax)
- Uniform: $5,000 (exempt from tax)
- School fees and hostel fees for 2 kids: $3,600 (exempt from tax)
- LTA: Remaining balance (exempt from tax)

All the above components are only valid if the bills are valid.