Hi All
I need ur help. I'm in a HR Outsourcing BPO. I want to know something related to Salary Components. In Salary ,there are many components, like Basic salary, LTA , HRA , MEDICAL etc. So the Questions, which my subordinate asked to me why these components like LTA, Conveyance Allowances are added in Salary. Because LTA is a component paid to provide for any expenditure by an associates towards any travel in respect to him/herself and dependents thereof. and we are getting pick and drop facility also. So why this component is added in Salary?
Please help and reply as soon as possible
From United States, Lincolnshire
I need ur help. I'm in a HR Outsourcing BPO. I want to know something related to Salary Components. In Salary ,there are many components, like Basic salary, LTA , HRA , MEDICAL etc. So the Questions, which my subordinate asked to me why these components like LTA, Conveyance Allowances are added in Salary. Because LTA is a component paid to provide for any expenditure by an associates towards any travel in respect to him/herself and dependents thereof. and we are getting pick and drop facility also. So why this component is added in Salary?
Please help and reply as soon as possible
From United States, Lincolnshire
Hi Alka,
These components are added to salary for their tax breaks. LTA is tax-exempt for 2 years in every block of 4 years beginning from 1986-89, provided you follow the tax-exemption rules. So it is a good tax saving component.
Conveyance Allowance is exempt upto Rs. 800 pm. However, I am not sure whether you could avail of this exemption in a BPO company, because your company provides pick-n-drop facility.
Warm regards,
Vikram
From United States, Auburn
These components are added to salary for their tax breaks. LTA is tax-exempt for 2 years in every block of 4 years beginning from 1986-89, provided you follow the tax-exemption rules. So it is a good tax saving component.
Conveyance Allowance is exempt upto Rs. 800 pm. However, I am not sure whether you could avail of this exemption in a BPO company, because your company provides pick-n-drop facility.
Warm regards,
Vikram
From United States, Auburn
Hi,
The LTA component as rightly mentioned is added to get tax banefit.
LTA till Rs. 25,000 is exempted from tax and Rs. 800 as conveyance is exempted.
Although it cannot be a part of monthly salary.
Generally the companies provide LTA as a benefit to an employee who have successfully completed 12 months of service in the company.
If you have any other query, do let us know.
Cheers
Archna
From India, Delhi
113The LTA component as rightly mentioned is added to get tax banefit.
LTA till Rs. 25,000 is exempted from tax and Rs. 800 as conveyance is exempted.
Although it cannot be a part of monthly salary.
Generally the companies provide LTA as a benefit to an employee who have successfully completed 12 months of service in the company.
If you have any other query, do let us know.
Cheers
Archna
From India, Delhi
I am still not clear -can employees of companies with pick-n-drop facility avail the exemption in conveyance allowance?
From United States, Auburn
From United States, Auburn
Hi Alka,
A very good question and the poser by your subordinates is understandable..
As my colleagues mentioned that LTA is provided and is given exemption as per the tax laws, which is a valid for high income professionals who are looking for tools/ways to save tax.
Perhaps this facility could be dropped as they want to more take home salary than wait for a year to claim the two year's entitlement and then provide the genuine travel & supporting bills. instead of this you give them meal coupons like Sodexho meal vouchers on a monthly basis. Or have a slab that uptill this salary no LTA..or add this to their taxable income and they would get the exemption if they provide the bills.
Since you are providing the pick & drop facility..then this conveyance of Rs 800 may not be correct..as this valid if there is no company provided facility or car and the employees have to make their own arrangements to come to office. Would suggest to have a re-look at this issue.
Regarding the salary structure..please use the facility of search on the top left to find recommended structure for payroll.
Regards,
Rajat
From India, Pune
A very good question and the poser by your subordinates is understandable..
As my colleagues mentioned that LTA is provided and is given exemption as per the tax laws, which is a valid for high income professionals who are looking for tools/ways to save tax.
Perhaps this facility could be dropped as they want to more take home salary than wait for a year to claim the two year's entitlement and then provide the genuine travel & supporting bills. instead of this you give them meal coupons like Sodexho meal vouchers on a monthly basis. Or have a slab that uptill this salary no LTA..or add this to their taxable income and they would get the exemption if they provide the bills.
Since you are providing the pick & drop facility..then this conveyance of Rs 800 may not be correct..as this valid if there is no company provided facility or car and the employees have to make their own arrangements to come to office. Would suggest to have a re-look at this issue.
Regarding the salary structure..please use the facility of search on the top left to find recommended structure for payroll.
Regards,
Rajat
From India, Pune
That was a real good input over the same....
Can anyone let me know why nowadays few companies can be exempted from pf deductions and esi deductions...
What are the terms and conditions involved.
Though i am aware about 6500 and 7500 condition involved
And also the other components of Salary structure that are tax exempted
For eg- Medical Claim
From United States, Irvine
Can anyone let me know why nowadays few companies can be exempted from pf deductions and esi deductions...
What are the terms and conditions involved.
Though i am aware about 6500 and 7500 condition involved
And also the other components of Salary structure that are tax exempted
For eg- Medical Claim
From United States, Irvine
Hi Everybody !
Basically LTA, is a monetary benefit that you get on the expenses you incur when you travel to any place once in a block of two years
Which one can avail if he or she fullfill the following criteria:
1. One should have taken leave from your company
2. One should actually travel
It cannot be granted for pick & drop facility (as some of you people have confusion)
Some notes on LTA which may help
Proof for Claiming LTA
According to rule 2B, you can produce an air, rail or any public transport ticket.
You can even submit the bills issued by the car rental company if you rent a vehicle.
However, the travel is applicable anywhere in India and not abroad. So an international air ticket will not hold
As it is all about for travel to any place in India so pick & drop neve comes in the scenario.
Available for Spouse & Dependent children of employee
hope it may elp u all!!!
cheers!!!! :)
Ashish Jain
From Australia, Sydney
Basically LTA, is a monetary benefit that you get on the expenses you incur when you travel to any place once in a block of two years
Which one can avail if he or she fullfill the following criteria:
1. One should have taken leave from your company
2. One should actually travel
It cannot be granted for pick & drop facility (as some of you people have confusion)
Some notes on LTA which may help
Proof for Claiming LTA
According to rule 2B, you can produce an air, rail or any public transport ticket.
You can even submit the bills issued by the car rental company if you rent a vehicle.
However, the travel is applicable anywhere in India and not abroad. So an international air ticket will not hold
As it is all about for travel to any place in India so pick & drop neve comes in the scenario.
Available for Spouse & Dependent children of employee
hope it may elp u all!!!
cheers!!!! :)
Ashish Jain
From Australia, Sydney
Hi, Could you please send me a format of consolidated salary slip. i need it please. and also tell me the calculation for professional tax.
From India, Bharat
From India, Bharat
Hi Radhikam,
Calculation for Professional Tax,
Gross Salary
ranging from up to 2999 Nil
3000 - 4999 -> 30 Rs.p.m
5000 - 7999 -> 60 Rs.p.m
8000 - 9999 -> 100 Rs.p.m
10000 - 14999 -> 150 Rs.p.m
15000 and above -> 200 Rs.p.m
Hope this will help you.
Warm Regards,
Suresh
Calculation for Professional Tax,
Gross Salary
ranging from up to 2999 Nil
3000 - 4999 -> 30 Rs.p.m
5000 - 7999 -> 60 Rs.p.m
8000 - 9999 -> 100 Rs.p.m
10000 - 14999 -> 150 Rs.p.m
15000 and above -> 200 Rs.p.m
Hope this will help you.
Warm Regards,
Suresh
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx