Hello Folks,
I am working for a New Delhi based company, from this financial year they are streamlining the process of salary slip and the management wants to deduct the TDS @ source. My net take home is Rs 19,000 (monthly) and my annual take home is Rs 2,28,000(INR). The component which will be the part of salary structure is given below
Basic
HRA @ 50% of basic
Conveyance Allowance @ Rs 800 per month
Medical Reimbursement - details given below
Other Allowances -
Note:
1. Rent receipt for the HRA paid to you to be submitted every month.
2. Medical reimbursement will be made against bills for medicines/doctors fees only. This will not be paid monthly as part of salary. Medical Insurance expense (mediclaim annual charges etc) is tax free upto Rs 15000 per annum. Another Rs 15000 if paid for parents is tax free. However, this is against the receipts of payments made.
I have few queries pl help me out by providing the answers to the queries.
(a) Pl give me the bifurcation of the salary of Rs 19,000 ( Pl use the above mentioned salary component)
(b) From the tax planning perspective i have a LIC of Rs 1,25,000 and i am paying the annual premium of Rs 6600. Pl help me out in calculating the TDS that will be deducted from mine salary. I am also planning to get a mediclaim of Rs 2,00,000 for which i have to pay the premium of Rs 2869 annually.
(c) Pl calculate & suggest how much TDS i am liable to pay.
(c) Is the thumb Rule for salary bifurcation correct. Pl comment
Basic = 50% of the CTC
HRA = 50% of Basic
Conveyance = 800
I request the community members to provide me the solution asap.
Regards
From India, Madras
I am working for a New Delhi based company, from this financial year they are streamlining the process of salary slip and the management wants to deduct the TDS @ source. My net take home is Rs 19,000 (monthly) and my annual take home is Rs 2,28,000(INR). The component which will be the part of salary structure is given below
Basic
HRA @ 50% of basic
Conveyance Allowance @ Rs 800 per month
Medical Reimbursement - details given below
Other Allowances -
Note:
1. Rent receipt for the HRA paid to you to be submitted every month.
2. Medical reimbursement will be made against bills for medicines/doctors fees only. This will not be paid monthly as part of salary. Medical Insurance expense (mediclaim annual charges etc) is tax free upto Rs 15000 per annum. Another Rs 15000 if paid for parents is tax free. However, this is against the receipts of payments made.
I have few queries pl help me out by providing the answers to the queries.
(a) Pl give me the bifurcation of the salary of Rs 19,000 ( Pl use the above mentioned salary component)
(b) From the tax planning perspective i have a LIC of Rs 1,25,000 and i am paying the annual premium of Rs 6600. Pl help me out in calculating the TDS that will be deducted from mine salary. I am also planning to get a mediclaim of Rs 2,00,000 for which i have to pay the premium of Rs 2869 annually.
(c) Pl calculate & suggest how much TDS i am liable to pay.
(c) Is the thumb Rule for salary bifurcation correct. Pl comment
Basic = 50% of the CTC
HRA = 50% of Basic
Conveyance = 800
I request the community members to provide me the solution asap.
Regards
From India, Madras
HI Rupinder,
There is no limit on bifurcation as per the law. Generally companies nowadays put the basic component as 35-60% of gross. It can be within this limit.
HRA ususally is 50% of basic as per the IT.
Conveyance is fixed at 800 to be tax exempt. Anything abve that would be liable to tax as per the norms.
Medical Reimbursemt @1250 can be paid monthly if you provide the bills or as per your submission of bills. If you dont provide bills it can be collected annually in your April salary but it would be after tax deduction.
If the mgmnt wants to deduct tax @ source, then your net would reduce by default as per the TDS rate.
FOr calculating TDS, I would suggest you can get the IT calcualtor by just googling it for teh FY 2009-10.
Rgds,
Ranjit
From India, Mumbai
5There is no limit on bifurcation as per the law. Generally companies nowadays put the basic component as 35-60% of gross. It can be within this limit.
HRA ususally is 50% of basic as per the IT.
Conveyance is fixed at 800 to be tax exempt. Anything abve that would be liable to tax as per the norms.
Medical Reimbursemt @1250 can be paid monthly if you provide the bills or as per your submission of bills. If you dont provide bills it can be collected annually in your April salary but it would be after tax deduction.
If the mgmnt wants to deduct tax @ source, then your net would reduce by default as per the TDS rate.
FOr calculating TDS, I would suggest you can get the IT calcualtor by just googling it for teh FY 2009-10.
Rgds,
Ranjit
From India, Mumbai
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