Salary Breakdown Help Needed: How Should I Divide a Rs 20,000 Income?

Hi, this is Sushank from Pune. I want to know the salary breakup of Rs 20,000/- Please help urgently.

Hi Shushank,

Salary Breakup as follows:

Basic - 9000
HRA - 2250
Conveyance - 800
Special Allowance - 6345
Gross - 18395
PF - 780
Gratuity - 433
Personal Accident Insurance - 100
CTC - 20000

Thank you.

Hi friend,

PF is 12% and HRA is now 50% in India. Professional tax is also deductible from the salary, which is Rs. 300 for all. Where is IT deduction, my friend?

Dear Shashank, you are still confused. Here is the solution as per Indian salary standards, especially if you are working in a city like metros:

Basic: 7000

HRA: 3500 (50% of basic, as per the rule; it may be 40% if in a B class city)

CCA: 1829 (City Compensatory Allowances are 26% of basic; it may reduce to 20% if you are not in a metro)

Conv: 2000 (it depends)

Medical: 583 (generally one Basic, so 7000/12)

LTA: 583 (generally one Basic, so 7000/12)

Other Allowances: 3665 (it varies)

PF contribution: 840 (12% of basic as per PF act)

CTC: 20000

But you will be getting:

Less PF: 840

Less PT: 300 (Professional Tax)

Less IT: 800 (Income tax, almost 800)

Cash in hand: 18060

Regards,

Abrar

Hi Sushank,

I suggest the following for achieving the best tax savings:

Basic: 10,000
HRA: 4,000
Transport allowance: 800
PF - Employer: 1,200
LTA: 833 (Annual)
Education allowance: 200
Special allowance: 2,967

HRA is tax-deductible based on the actual rent paid; Transport allowance is tax-free; PF - of employer and employee is tax-free; Education allowance is exempt at Rs. 100 per month per child. Unfortunately, there are no other tax-free allowances. However, you could claim a deduction by saving up to Rs. One lakh of income.

Hi, I hope we can add and make changes to the package:

Basic: 8000
HRA: 4000
Conveyance: 800 (Tax exempted 800 per month)
CCA: 2000
Special Allowance: 2000
Medical Reimbursement: 1250 (Tax exempted but need to produce bills)
Gross: 18050
Employer's PF: 960
LTA: 1200
CTC: 20210

You can make changes in the special allowance and CCA as per your needs. This structure will help employees to take exemptions in income tax as well. For any other assistance, please feel free to ask.

CTC 2.3L - How to calculate monthly salary:

Basic, HRA, Conveyance, ESI, PF.