I need to suggest a new salary structure for my company that is more tax beneficial. I need to know how I can decide the different salary components' percentage in the bifurcation of the gross salary. Currently, we are using the following structure:
- Basic: 40%
- HRA: 30%
- Special Allowance: 30%
- Conveyance Allowance Fixed - 800
- Medical Allowance Fixed - 1250
Please advise on how I can use different components/allowances to provide more tax benefits to my employees.
Thank you,
Regards,
Trupti
From India, Ahmadabad
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3- Basic: 40%
- HRA: 30%
- Special Allowance: 30%
- Conveyance Allowance Fixed - 800
- Medical Allowance Fixed - 1250
Please advise on how I can use different components/allowances to provide more tax benefits to my employees.
Thank you,
Regards,
Trupti
From India, Ahmadabad
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Hi Trupti You can add food coupen,LTA,Children education allowance along with you current structure.
From India, Madras
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From India, Madras
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Yes, very true. But can you please tell me how to decide their percentage? Should it vary based on different salaries? For example, a $10k salary would have a different percentage compared to $50k, and $1L would be something else. Can you please help me with this?
From India, Ahmadabad
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From India, Ahmadabad
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Employee Benefits.doc