Dear All, I am new in payroll. Kindly suggest me about the salary structure and please let me know the % of break ups...... Regards Shweta
From India, New Delhi
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1From India, New Delhi
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Dear All, i am new in payroll. kindly let me know the salary breakups % and structure regards, dilip
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Dear Shweta & Anil, Please find enclosed herewith Salary Break-Up this will be useful for u. thanks/regards, Amit Kumar 98788-52895
From India, Ludhiana
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From India, Ludhiana
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Salary breakup must be employee-friendly (Tax Saving Purpose). Please find below the salary heads:
1. Basic - Income Tax Benefit: NIL
2. House Rent Allowance (HRA) - Maximum 50% basic (Metro cities) 40% basic (non-metro cities).
Income Tax Benefit: Excess of actual rent paid over 10% of Basic salary OR Maximum HRA allowed (50% or 60% of basic) OR Actual Rent Paid – whichever is lower is exempt from tax.
3. Transport Allowance - Supposed to be conveyance allowance meant for transportation between office and residence only.
Income Tax Benefit: Exempt maximum up to Rs.800/- per month. No proof required.
4. Children's Education Allowance - Income Tax Benefit: Rs.100 per child subject to max 2 children. Hence maximum Rs.200/- is exempt.
5. Medical Allowances / Reimbursements - Can be given against bills or without bills, does not matter. Some companies give it monthly, some quarterly, half-yearly, or yearly also. Some companies give it only against medical bills, some do not ask for bills, rather bills are only demanded for Final Tax Computation at the end of the year. No thumb rule about it. Preferred to pay monthly, without bills and ask for bills as per your wish, quarterly, half-yearly, or at the end of the year. Do not choose to give it against bills only, there is no rule for the same… It only makes salary processing a cumbersome process.
Income Tax Benefit: Maximum Rs.1250/- p.m. (Rs.15000 p.a.) is exempt only if Original Bills are provided.
6. Telephone Reimbursement: Exempted up to Rs.1500 per month (Need to produce bills) - Sec 10
7. Books & Periodical Reimbursement: Actual Expenses (Need to produce bills)
8. VM Reimbursement: Actual Expenses (Need to produce bills)
9. Special Allowances - Balancer
Regards
From India, Kota
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1. Basic - Income Tax Benefit: NIL
2. House Rent Allowance (HRA) - Maximum 50% basic (Metro cities) 40% basic (non-metro cities).
Income Tax Benefit: Excess of actual rent paid over 10% of Basic salary OR Maximum HRA allowed (50% or 60% of basic) OR Actual Rent Paid – whichever is lower is exempt from tax.
3. Transport Allowance - Supposed to be conveyance allowance meant for transportation between office and residence only.
Income Tax Benefit: Exempt maximum up to Rs.800/- per month. No proof required.
4. Children's Education Allowance - Income Tax Benefit: Rs.100 per child subject to max 2 children. Hence maximum Rs.200/- is exempt.
5. Medical Allowances / Reimbursements - Can be given against bills or without bills, does not matter. Some companies give it monthly, some quarterly, half-yearly, or yearly also. Some companies give it only against medical bills, some do not ask for bills, rather bills are only demanded for Final Tax Computation at the end of the year. No thumb rule about it. Preferred to pay monthly, without bills and ask for bills as per your wish, quarterly, half-yearly, or at the end of the year. Do not choose to give it against bills only, there is no rule for the same… It only makes salary processing a cumbersome process.
Income Tax Benefit: Maximum Rs.1250/- p.m. (Rs.15000 p.a.) is exempt only if Original Bills are provided.
6. Telephone Reimbursement: Exempted up to Rs.1500 per month (Need to produce bills) - Sec 10
7. Books & Periodical Reimbursement: Actual Expenses (Need to produce bills)
8. VM Reimbursement: Actual Expenses (Need to produce bills)
9. Special Allowances - Balancer
Regards
From India, Kota
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Creating a Competitive Salary Structure.doc
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