I am facing a big problem with my compensation structure because other than education allowance and conveyance I don't have anything which can save tax from their earnings.
Can anybody tell me what other components I can include to save employees money.
Note: We don't pay anything in cash to employees, even a single paisa will get transferred to back account.
Reg
Chirag jain
From India, Mumbai
Can anybody tell me what other components I can include to save employees money.
Note: We don't pay anything in cash to employees, even a single paisa will get transferred to back account.
Reg
Chirag jain
From India, Mumbai
Hi Chirag,
U can add REIMBURSEMENT components in the salary structure like
MEDICAL REIMBURSMENT
KNOWLEDGE UPDATE
UNIFORM ALLOWANCE
PETROL & MAINTENANCE
HELPER
On all the above components , on production of the bilsl every month u can treat as NON TAXABLE else TAXABLE income.
HOpe this will help u in setting up the structure.
Regards,
Jijo
From India, Mumbai
U can add REIMBURSEMENT components in the salary structure like
MEDICAL REIMBURSMENT
KNOWLEDGE UPDATE
UNIFORM ALLOWANCE
PETROL & MAINTENANCE
HELPER
On all the above components , on production of the bilsl every month u can treat as NON TAXABLE else TAXABLE income.
HOpe this will help u in setting up the structure.
Regards,
Jijo
From India, Mumbai
Hi folks, I heard that car lease also to a lot of extent helps in saving the tax liability but i dont have much info as such. If anybody can throw light on the same would be great. Thanks JJ
Dear all, As per my knowledge the allowances given in the salary grid are not taxable until you produce the bills for them. All the allowances are non-taxable
From India, Bangalore
1From India, Bangalore
Dear All,
In our new budget it has been changed. Now all the fringe benefits will be taxable. Are these expenses will be still covered under non taxable components.
MEDICAL REIMBURSEMENT
KNOWLEDGE UPDATE
UNIFORM ALLOWANCE
PETROL & MAINTENANCE
HELPER
Conveyance REIMBURSEMENT I am already giving, because it is not an earning for employees I am not including it as his salary component.
Reg
Chirag
From India, Mumbai
In our new budget it has been changed. Now all the fringe benefits will be taxable. Are these expenses will be still covered under non taxable components.
MEDICAL REIMBURSEMENT
KNOWLEDGE UPDATE
UNIFORM ALLOWANCE
PETROL & MAINTENANCE
HELPER
Conveyance REIMBURSEMENT I am already giving, because it is not an earning for employees I am not including it as his salary component.
Reg
Chirag
From India, Mumbai
Hi,
To save tax :
Special allowance can be split into:
1. Car Hiring -Non taxable upto Rs 1,20,000 per annum
2.Petrol allowance /maintenance Non taxable upto Rs 1,80,000 per annum
3.LTA Rs3000 per annum
4.Driver Salary Rs 60000
5.Education allowance 12000
Above the above mentioned limit 16.5% tax will be applicable.
The above split can be very helpful in saving tax.
However it would depend on the compensation structure provided or follwed by employer.
To save tax :
Special allowance can be split into:
1. Car Hiring -Non taxable upto Rs 1,20,000 per annum
2.Petrol allowance /maintenance Non taxable upto Rs 1,80,000 per annum
3.LTA Rs3000 per annum
4.Driver Salary Rs 60000
5.Education allowance 12000
Above the above mentioned limit 16.5% tax will be applicable.
The above split can be very helpful in saving tax.
However it would depend on the compensation structure provided or follwed by employer.
hi, for availing tax exemption on car petrol & maintence reimbursement, shud the car b on employee’s name only or can it be on any of his/her family member’s name too? pl reply
From India, Hyderabad
From India, Hyderabad
Hi,
Its in response to a reply to one of the queries in citehr.
It is mentioned that helper allowance helps to save tax.
Can someone let me know what exactly is a helper allowance.
Please share your knowledge.
Santosh Verma.
(9886609605
From India, Bangalore
Its in response to a reply to one of the queries in citehr.
It is mentioned that helper allowance helps to save tax.
Can someone let me know what exactly is a helper allowance.
Please share your knowledge.
Santosh Verma.
(9886609605
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Compensation Structure.ppt
MODEL STRUCTURE OF COMPENSATION.do c