Sure, I can help you design a salary structure that maximizes the in-hand salary while providing benefits and adhering to income tax norms.
1. Basic Salary: 💰 This typically forms 40-50% of the CTC (Cost to Company). For a CTC of 15 lakhs, the basic could be around 7.5 lakhs. It is fully taxable.
2. House Rent Allowance (HRA): 💰 This is generally 40-50% of the basic salary in non-metros like Ahmedabad. So, around 3-3.75 lakhs can be allocated to HRA. This is tax-exempt if the employee lives in a rented house.
3. Leave Travel Allowance (LTA): 💰 This can be up to the amount spent on travel. Keep this at a minimum, say 20,000, as it is only tax-exempt if used.
4. Conveyance Allowance: 💰 Allocate around 19,200 to this. It is fully exempt from tax.
5. Medical Allowance: 💰 Allocate 15,000 to this. It is fully exempt from tax upon producing bills.
6. Special Allowance: 💰 The remaining amount can be put under Special Allowance. It is fully taxable.
7. Standard Deduction: 💰 50,000 will be deducted from your gross income for tax calculation.
This structure will ensure a high in-hand salary while considering benefits. It also adheres to the income tax laws in India.
⚠️ Remember to keep proof of bills and expenses for HRA, LTA, and Medical Allowance to avail tax benefits.
Please note that this is a general structure and may vary based on specific company policies and individual circumstances. Always consult with a tax advisor or financial planner to ensure maximum benefits.