Hi,
Can somebody help me out in salary breakup where my CTC is 3.00lacks per annum,
here i want to breakup this into Basic, HRA, Medical, TA etc etc....
and how much i m liable to pay income tax and why.... :?:
waiting for kind inputs.
Kind Regards,
Rupendra
From India, New Delhi
Can somebody help me out in salary breakup where my CTC is 3.00lacks per annum,
here i want to breakup this into Basic, HRA, Medical, TA etc etc....
and how much i m liable to pay income tax and why.... :?:
waiting for kind inputs.
Kind Regards,
Rupendra
From India, New Delhi
Hii,
Usually 20-30% of the gross is fixed as basic salary. If u r giving 3lakhs per annum, calculate for one month which comes to 25,000. So 30% of 25000 is 7500 is the basic. So the remaining salary divide into breakups such as HRA, conveyances, etc. See the acts, medical re-embursements shouldn't exceed 15000pa. so which comes to 1250 per month. Beyond 15,000, its taxable. so we have to keep the max limit into mind. Pf is 12% by an employee and 12% by an employeer. According to the rule, a company having more than 10 employees has to be given ESI also. It depends on the company and their policies. We can provide other benefits also which includes LTA. There are so many ways of salary breakups which depends on company. Hoep this serves ur purpose. Thanx nd regards
Srikanth.
From India, Bangalore
Usually 20-30% of the gross is fixed as basic salary. If u r giving 3lakhs per annum, calculate for one month which comes to 25,000. So 30% of 25000 is 7500 is the basic. So the remaining salary divide into breakups such as HRA, conveyances, etc. See the acts, medical re-embursements shouldn't exceed 15000pa. so which comes to 1250 per month. Beyond 15,000, its taxable. so we have to keep the max limit into mind. Pf is 12% by an employee and 12% by an employeer. According to the rule, a company having more than 10 employees has to be given ESI also. It depends on the company and their policies. We can provide other benefits also which includes LTA. There are so many ways of salary breakups which depends on company. Hoep this serves ur purpose. Thanx nd regards
Srikanth.
From India, Bangalore
Hi,
Here I am giving below detailed salary break-up details. Pls check
Basic 30% on Gross salary
HRA is on Basic 40%
Convince 800 p.m ( above 800 taxable)
Medical allowance 1250 (above 1250 taxable)
LTA 1250 (above 1250 taxable)
Special allowance - difference amount of Gross salary
If you want you can add Performance Bonus,attendance allowance, dating allowance,etc.,
Regards,
P.S.Phani.
From India, Bangalore
1Here I am giving below detailed salary break-up details. Pls check
Basic 30% on Gross salary
HRA is on Basic 40%
Convince 800 p.m ( above 800 taxable)
Medical allowance 1250 (above 1250 taxable)
LTA 1250 (above 1250 taxable)
Special allowance - difference amount of Gross salary
If you want you can add Performance Bonus,attendance allowance, dating allowance,etc.,
Regards,
P.S.Phani.
From India, Bangalore
Dear Rupendra,
I will give another formula which will be tax savvy also. First find out the city for which salary is to be fixed. If it is a Metro HRA up to 60% of Basic Pay can be tax free. So fix it accordingly. Medical Reimbursement up to Rs. 15000.00 per annum is not taxable if proper bills are attached. Maximum of Rs. 65.00 per day can be allowed towards meals (either you give meal vouchers or give actual food).Assuming 250 days working, it comes to Rs. 16250.00 per annum.You can pay a reasonable amount towards purchase of Uniforms and towards LTA also. All other perks attract either income tax or Fringe benefit tax, so do not consider them. Now formula would be:
(Rs. 3.00 Lacs - Total of perks) divided by 1.60 would be the basic pay.
Let us do a real exercise. Suppose Uniform Allowance is Rs. 10,000.00 per annum and LTA Rs. 15.000.00 per annum. Then total perks become= 15000 medical +16250 meal +25000 uniform and LTA=56250.00. Deduct this amount from 3.00 lacs. balance is 243750.00 . Divide it by 1.60 = 152344 or 12695.00 per month is the basic pay and also the taxable income of the employee..
If you want to pay PF also, then you shall have to adjust PF amount also. Suppose you want to deduct PF on 6500.00 only then first deduct 12% of 6500.00 multiplied by 12 months i.e. Rs. 9360.00 from 243750.00 and then divide the balance amount of 234390 by 1.6 to arrive at the annual basic of 146494.00 rupees.In this case taxable income would be 1.37 lacks.
Suppose you want to deduct PF on full basic then in that case divide 243750 by 1.72(1.00 for basic + 0.60 for HRA and 0.12 for PF)to arrive at annual basic of Rs.141715.00. In this case Taxable income further reduces to Rs. 1.25 lacs.
If you further want to reduce taxable income, pay 15 % of basic towards Superannuation Fund. In that case 243750 shall have to be divided by 1.87 (1.72+0.15 Superannuation) giving annual basic of Rs. 1.30 and taxable income of Rs. 1.15 lacs.
KKT
From India, Delhi
I will give another formula which will be tax savvy also. First find out the city for which salary is to be fixed. If it is a Metro HRA up to 60% of Basic Pay can be tax free. So fix it accordingly. Medical Reimbursement up to Rs. 15000.00 per annum is not taxable if proper bills are attached. Maximum of Rs. 65.00 per day can be allowed towards meals (either you give meal vouchers or give actual food).Assuming 250 days working, it comes to Rs. 16250.00 per annum.You can pay a reasonable amount towards purchase of Uniforms and towards LTA also. All other perks attract either income tax or Fringe benefit tax, so do not consider them. Now formula would be:
(Rs. 3.00 Lacs - Total of perks) divided by 1.60 would be the basic pay.
Let us do a real exercise. Suppose Uniform Allowance is Rs. 10,000.00 per annum and LTA Rs. 15.000.00 per annum. Then total perks become= 15000 medical +16250 meal +25000 uniform and LTA=56250.00. Deduct this amount from 3.00 lacs. balance is 243750.00 . Divide it by 1.60 = 152344 or 12695.00 per month is the basic pay and also the taxable income of the employee..
If you want to pay PF also, then you shall have to adjust PF amount also. Suppose you want to deduct PF on 6500.00 only then first deduct 12% of 6500.00 multiplied by 12 months i.e. Rs. 9360.00 from 243750.00 and then divide the balance amount of 234390 by 1.6 to arrive at the annual basic of 146494.00 rupees.In this case taxable income would be 1.37 lacks.
Suppose you want to deduct PF on full basic then in that case divide 243750 by 1.72(1.00 for basic + 0.60 for HRA and 0.12 for PF)to arrive at annual basic of Rs.141715.00. In this case Taxable income further reduces to Rs. 1.25 lacs.
If you further want to reduce taxable income, pay 15 % of basic towards Superannuation Fund. In that case 243750 shall have to be divided by 1.87 (1.72+0.15 Superannuation) giving annual basic of Rs. 1.30 and taxable income of Rs. 1.15 lacs.
KKT
From India, Delhi
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