Dear Friends, Hi, Kindly help me out in desiging the salary breakup so that less tax is deducted. Help me out in selecting the heads for salary breakup. Thanks in advance Ritu
From India, Delhi
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1From India, Delhi
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Hi Ritu,
The contents of the salary break-up are as below. You can prepare it according to your own suitability. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- CCA - 825/- is exempted from tax
- Other Allowances
- Mobile Reimbursement
- Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Employees getting more than this will be covered under Mediclaim or as per company policy.
Ex-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also called CTC.
I hope this information has helped clear your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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The contents of the salary break-up are as below. You can prepare it according to your own suitability. HRA would be 50% or 60% of the basic salary.
- Basic
- HRA
- CCA - 825/- is exempted from tax
- Other Allowances
- Mobile Reimbursement
- Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum = 12 * Gross/Month
PF Contribution = 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Employees getting more than this will be covered under Mediclaim or as per company policy.
Ex-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
Annual Total Cost = AFGC + PF + ESIC
Annual total cost is also called CTC.
I hope this information has helped clear your queries to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Amit What is CCA ? City Compensation Allowance????? If yes then we can even add in another point of Conveyance Allowance which is tax exempt upto 800/- per month right ? Best Regards, Tina
From India, Mumbai
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From India, Mumbai
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Hi Tina,
CCA is City Conveyance Allowance, which is the same as what you are saying. Actually, it is Rs. 825/-, which is exempted, but due to round figures, we keep it at Rs. 800/- only.
Regards,
Amit Seth.
From India, Ahmadabad
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CCA is City Conveyance Allowance, which is the same as what you are saying. Actually, it is Rs. 825/-, which is exempted, but due to round figures, we keep it at Rs. 800/- only.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Amit!!! Was going through the breakup given, just need to confirm that ESI contribution from employees salary is 1.75% of basic salary and 4.75% is of employer.. Isn’t it? Thanks, Mansi
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Salary breakup format.xls
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