Dear Members,
I am working with one of the Construction Company in Mumbai. The Company has just got the project for developing a residential cum commercial premises.
The company has interviewed 2-3 senior civil engineers for the purpose of projects. The Salary would be around 9.5 to 11 Lacs p.a.
I have to give the break up of salary i.e. Basic, DA, HRA and other allowance like Medical & Conveyance.
Being in the Accounts I know that the Conveyance of Rs. 800/- and Medical Reimbursement to the extent of Rs. 15,000/- p.a. and HRA as per rule is exempted from Tax.
I want to know the following things:
a) How the Basic is to be calculated on the Salary ?
b) Is there any specific law for calculation of Basic ?
c) Whether DA, HRA and other Payments are to be calculated on Basic only.
d) In what other names we can give payments under Salary ?
Waiting for your suggestions and guidance.
Thanks
Vidya
From India, Mumbai
I am working with one of the Construction Company in Mumbai. The Company has just got the project for developing a residential cum commercial premises.
The company has interviewed 2-3 senior civil engineers for the purpose of projects. The Salary would be around 9.5 to 11 Lacs p.a.
I have to give the break up of salary i.e. Basic, DA, HRA and other allowance like Medical & Conveyance.
Being in the Accounts I know that the Conveyance of Rs. 800/- and Medical Reimbursement to the extent of Rs. 15,000/- p.a. and HRA as per rule is exempted from Tax.
I want to know the following things:
a) How the Basic is to be calculated on the Salary ?
b) Is there any specific law for calculation of Basic ?
c) Whether DA, HRA and other Payments are to be calculated on Basic only.
d) In what other names we can give payments under Salary ?
Waiting for your suggestions and guidance.
Thanks
Vidya
From India, Mumbai
Hi vidya,
a. Basic can be computed 40-45% on CTC. The more basic, the more saving in the hands of employees by way of PF and terminal benefits like gratuity.
b. No standard in deriving basic but ensure it does not fall below the min. wages
c. No DA component is opted in pvt sectors but it can be included.
4. Other components like Children Edu. allowance, club allowance, food coupons, gift coupons, car allowance, spl. allowance, performance based allowance, etc. may be considered.
Pon, Chennai
From India, Lucknow
604a. Basic can be computed 40-45% on CTC. The more basic, the more saving in the hands of employees by way of PF and terminal benefits like gratuity.
b. No standard in deriving basic but ensure it does not fall below the min. wages
c. No DA component is opted in pvt sectors but it can be included.
4. Other components like Children Edu. allowance, club allowance, food coupons, gift coupons, car allowance, spl. allowance, performance based allowance, etc. may be considered.
Pon, Chennai
From India, Lucknow
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