I am a US citizen and may be taking up an assignment in India with a total CTC of INR 1 crore. per annum What is the best breakup to minimize taxes? I will finally be converting to US$ to take the earnings out. Thanks.
From United States, Wilmington
From United States, Wilmington
Dear
HRA - 50% of your basic for metros, exempt from Tax
Go for Car scheme - The EMI payable is exempt from Tax plus 20,000/- p.m. towards fuel & maintanance exempted from IT.
Food coupons - max 5400 p.m. exempted from tax.
Medical bills - 1250 p.m. is non-taxable. The premium for mediclaim is also exempted from IT.
100,000/- savings on bonds, ULIP, Insurance, etc is tax-free.
Anyway, you have to shell out 1/3 of your CTC as I.T.
From India, Lucknow
604HRA - 50% of your basic for metros, exempt from Tax
Go for Car scheme - The EMI payable is exempt from Tax plus 20,000/- p.m. towards fuel & maintanance exempted from IT.
Food coupons - max 5400 p.m. exempted from tax.
Medical bills - 1250 p.m. is non-taxable. The premium for mediclaim is also exempted from IT.
100,000/- savings on bonds, ULIP, Insurance, etc is tax-free.
Anyway, you have to shell out 1/3 of your CTC as I.T.
From India, Lucknow
Hi,
You are adviced to keep your basic as minimal as possible and have maximum reimbursements and perquisites. HRA may be 50% of the basic.
Your SSN contirbution may come into picture since US does not have an agreement with India. This will lead to a deduction of 12% of your basic as a contribution to SSN.
Regards
From India, Mumbai
You are adviced to keep your basic as minimal as possible and have maximum reimbursements and perquisites. HRA may be 50% of the basic.
Your SSN contirbution may come into picture since US does not have an agreement with India. This will lead to a deduction of 12% of your basic as a contribution to SSN.
Regards
From India, Mumbai
Hi,
Rs. 1 crore is very high CTC and there is little scope for saving much income tax on it. Try and get as many actual reimbursements from employer instead of salary but mind you that all reimbursements are not tax exempt.
I do not agree with the pon165's views that Car EMI is exempt from tax.
My sincere suggestion to you will be to consult a Chartered Accountant specialising in Tax Laws. HR professionals are generally not Income Tax Experts, hence advise you will get thru this thread may not be very professional. Rather it will be in bits and pieces and incomplete.
Thanks & Regards
From India, Pune
Rs. 1 crore is very high CTC and there is little scope for saving much income tax on it. Try and get as many actual reimbursements from employer instead of salary but mind you that all reimbursements are not tax exempt.
I do not agree with the pon165's views that Car EMI is exempt from tax.
My sincere suggestion to you will be to consult a Chartered Accountant specialising in Tax Laws. HR professionals are generally not Income Tax Experts, hence advise you will get thru this thread may not be very professional. Rather it will be in bits and pieces and incomplete.
Thanks & Regards
From India, Pune
Thanks everyone. What is SSN? If I live in Pune, will 50% of my basic salary be tax exempt as HRA? Even if I do not use the full HRA for rent, will I still get the exemption?
I will certainly use a tax advisor, once I am cloer to a deal.
Thanks again.
From United States, Wilmington
I will certainly use a tax advisor, once I am cloer to a deal.
Thanks again.
From United States, Wilmington
Pune is in Metro category. You can not avail entire 50% of your basic as HRA to be out of tax net. The saving is (actual rent paid - 10% of your basic) and you have to prove with rental receipt or lease agreement.
The Company owned Car scheme - EMI Rs.2800 + odd per lac will be deductible from your salary and the same is exempt from tax, but there is a ceiling. Pls check with the consultants.
From India, Lucknow
The Company owned Car scheme - EMI Rs.2800 + odd per lac will be deductible from your salary and the same is exempt from tax, but there is a ceiling. Pls check with the consultants.
From India, Lucknow
Hey Challenger!
SSN is social security number... your savings - 12% of basic from ur salary and 12% fromthe company. This is a savings however u will not be able to withdraw it and take back to ur country. U will have to withdraw and spen the money in India itself...
exemption on HRA will be on your actual rent paid.
Regards.
From India, Mumbai
SSN is social security number... your savings - 12% of basic from ur salary and 12% fromthe company. This is a savings however u will not be able to withdraw it and take back to ur country. U will have to withdraw and spen the money in India itself...
exemption on HRA will be on your actual rent paid.
Regards.
From India, Mumbai
Hi Everyone,
I am new to this site. I want to re-structure the CTC of the employees of my company. Ours is a pharmaceutical KPO, hence I can not add the dress allowance. Also ESI/PF is not applicable for our employees since there basic is more than 6,500/- pm.
I am not aware what "Sudexo" is, as mentioned by Veena J and yajeethehr. Can someone please help me to understand this?
Could you guys please help me with the names of few more allowances which could be added to minimize the tax implications?
Thanks.
From India, Delhi
I am new to this site. I want to re-structure the CTC of the employees of my company. Ours is a pharmaceutical KPO, hence I can not add the dress allowance. Also ESI/PF is not applicable for our employees since there basic is more than 6,500/- pm.
I am not aware what "Sudexo" is, as mentioned by Veena J and yajeethehr. Can someone please help me to understand this?
Could you guys please help me with the names of few more allowances which could be added to minimize the tax implications?
Thanks.
From India, Delhi
Hey all,
Could anyone please help me with this?
Thank you.
"Hi Everyone,
I am new to this site. I want to re-structure the CTC of the employees of my company. Ours is a pharmaceutical KPO, hence I can not add the dress allowance. Also ESI/PF is not applicable for our employees since there basic is more than 6,500/- pm.
I am not aware what "Sudexo" is, as mentioned by Veena J and yajeethehr. Can someone please help me to understand this?
Could you guys please help me with the names of few more allowances which could be added to minimize the tax implications?
Thanks.
__________________
Kind Regards,
Jyoti"
From India, Delhi
Could anyone please help me with this?
Thank you.
"Hi Everyone,
I am new to this site. I want to re-structure the CTC of the employees of my company. Ours is a pharmaceutical KPO, hence I can not add the dress allowance. Also ESI/PF is not applicable for our employees since there basic is more than 6,500/- pm.
I am not aware what "Sudexo" is, as mentioned by Veena J and yajeethehr. Can someone please help me to understand this?
Could you guys please help me with the names of few more allowances which could be added to minimize the tax implications?
Thanks.
__________________
Kind Regards,
Jyoti"
From India, Delhi
Ms. Jyoti,
Following Benefits / Allowances are exempt from Income Tax. Do give consideration to these while re-structuring salaries.:
Washing Allowance Rs. 5000 p.a.
LTA Rs. 20000 p.a. twice in the block of 4 years.
Conveyance Allowance Rs. 9600 p.a.
Medical Reimbursement Rs. 15000 p.a.
Sodexo are food coupons and they can be encashed at hotels and departmental stores for the purchase of food and food items. Please visit in.sodexo.com to get more details.
Thanks & Regards
From India, Pune
Following Benefits / Allowances are exempt from Income Tax. Do give consideration to these while re-structuring salaries.:
Washing Allowance Rs. 5000 p.a.
LTA Rs. 20000 p.a. twice in the block of 4 years.
Conveyance Allowance Rs. 9600 p.a.
Medical Reimbursement Rs. 15000 p.a.
Sodexo are food coupons and they can be encashed at hotels and departmental stores for the purchase of food and food items. Please visit in.sodexo.com to get more details.
Thanks & Regards
From India, Pune
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.
CTC Breakup.xls
CTC - Breakup.JPG