Hi, I have got this offer from a company for CTC of 29.4 LPA. Below is the CTC breakup they gave me, wanted to check if this is correct breakup or not according Indian rule. Please can any one tell me if this is breakup is correct or not and should I accept it or not asap?
Monthly Annual
------------ -----------
Basic Salary - 50% 122500 1470000
HRA - 40% 49000 588000
LTA 9375 112500
PF contribution by employee - 12% 14700 176400
Special allowances 49425 593100
----------------------------------------------------------------------------
Total Gross Salary 245000 2940000
----------------------------------------------------------------------------
Deduction:
PF contribution by employee - 12% 14700 176400
Professional Tax (PT) 200 2400
----------------------------------------------------------------------------
Net Salary (Gross-Total deductions) 230100 2761200
----------------------------------------------------------------------------
Thanks in advance
From India, Hyderabad
Monthly Annual
------------ -----------
Basic Salary - 50% 122500 1470000
HRA - 40% 49000 588000
LTA 9375 112500
PF contribution by employee - 12% 14700 176400
Special allowances 49425 593100
----------------------------------------------------------------------------
Total Gross Salary 245000 2940000
----------------------------------------------------------------------------
Deduction:
PF contribution by employee - 12% 14700 176400
Professional Tax (PT) 200 2400
----------------------------------------------------------------------------
Net Salary (Gross-Total deductions) 230100 2761200
----------------------------------------------------------------------------
Thanks in advance
From India, Hyderabad
Dear Colleague,
Broadly it is a correct structure. The employer had given 50% of Basic and probably rest of 50% will constitute other Allowances.
As far as HRA is concerned it varies from 25% to 45% of Basic Pay depending on your City where you are posted.
LTA is as per internal policy and IT Rules normally and seems in order.
PF is 12% which is Law based and it is also right
All the Best!!!
From India, Chennai
309Broadly it is a correct structure. The employer had given 50% of Basic and probably rest of 50% will constitute other Allowances.
As far as HRA is concerned it varies from 25% to 45% of Basic Pay depending on your City where you are posted.
LTA is as per internal policy and IT Rules normally and seems in order.
PF is 12% which is Law based and it is also right
All the Best!!!
From India, Chennai
Dear Member,
Calculation wise the CTC structure is fine, even the HR has considered the wages definition as per new wages code (which is yet to be implemented).
But in this structure, you have to pay more Income Tax, as per my opinion it can be more tax friendly by adding some Re-imbursement components (in place of “Special Allowances”) like Mobile Reimbursement, Fuel Reimbursement, Book-Periodical Reimbursement etc.
In the reimbursement process you have to submit separate claim with bills and you can get the amt. as per Reimbursement Policy.
Dear Dr P.SIVAKUMAR,
The HRA can be given at different rates, but here it is more important to show the HRA in a tax friendly way. Same is correctly shown (being 40% which is maximum HRA exemption in case of Non-Metro city).
From India, Delhi
Calculation wise the CTC structure is fine, even the HR has considered the wages definition as per new wages code (which is yet to be implemented).
But in this structure, you have to pay more Income Tax, as per my opinion it can be more tax friendly by adding some Re-imbursement components (in place of “Special Allowances”) like Mobile Reimbursement, Fuel Reimbursement, Book-Periodical Reimbursement etc.
In the reimbursement process you have to submit separate claim with bills and you can get the amt. as per Reimbursement Policy.
Dear Dr P.SIVAKUMAR,
The HRA can be given at different rates, but here it is more important to show the HRA in a tax friendly way. Same is correctly shown (being 40% which is maximum HRA exemption in case of Non-Metro city).
From India, Delhi
Dear Colleagues,
Yes, 100% the Tax Laws especially how tax friendly % of HRA to give sufficient tax saving proposition is what is to be supported by Employer. Components like "Car Hiring reimbursement, " Fuel Reimbursement, Driver Salary Reimbursement" are few examples which as a Policy from the Side of Employer may be considered from Income Tax saving angle.
From India, Chennai
Yes, 100% the Tax Laws especially how tax friendly % of HRA to give sufficient tax saving proposition is what is to be supported by Employer. Components like "Car Hiring reimbursement, " Fuel Reimbursement, Driver Salary Reimbursement" are few examples which as a Policy from the Side of Employer may be considered from Income Tax saving angle.
From India, Chennai
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