Understanding the Ratio Between CTC and Salary Components
Is there any fixed ratio between the CTC and different salary components? Does it vary from company to company? Legally, is there any binding for maintaining the ratio or number of components?
As an example:
- Total CTC : HRA = 1 : X
- Total CTC : TA = 1 : Y
- Total CTC : Basic = 1 : Z
Kindly help me with all the components' individual ratios against the total CTC. I will be really thankful.
Regards,
Santanu Mazumdar
From India, New Delhi
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Is there any fixed ratio between the CTC and different salary components? Does it vary from company to company? Legally, is there any binding for maintaining the ratio or number of components?
As an example:
- Total CTC : HRA = 1 : X
- Total CTC : TA = 1 : Y
- Total CTC : Basic = 1 : Z
Kindly help me with all the components' individual ratios against the total CTC. I will be really thankful.
Regards,
Santanu Mazumdar
From India, New Delhi
Acknowledge(0)Amend(0)
Basic Salary
Retain at 50% of Monthly Gross.
House Rent Allowance (HRA)
Retain at 50% of Basic as HRA in non-metro areas; otherwise, 60% of Basic as HRA in metro areas. This will result in the maximum exemption under IT.
Conveyance
Fixed at Rs. 800/- as it is the maximum exemption under IT.
Medical Reimbursement
Fixed at Rs. 1,250/- as it is the maximum exemption under IT.
Leave Travel Allowance (LTA)
Retain at 8.33% of Basic as LTA.
Meal Voucher
Upper limit to be Rs. 3,000/- (with slabs based on annual income).
Balance to be put under other allowances (which will be taxable).
From India, Delhi
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Retain at 50% of Monthly Gross.
House Rent Allowance (HRA)
Retain at 50% of Basic as HRA in non-metro areas; otherwise, 60% of Basic as HRA in metro areas. This will result in the maximum exemption under IT.
Conveyance
Fixed at Rs. 800/- as it is the maximum exemption under IT.
Medical Reimbursement
Fixed at Rs. 1,250/- as it is the maximum exemption under IT.
Leave Travel Allowance (LTA)
Retain at 8.33% of Basic as LTA.
Meal Voucher
Upper limit to be Rs. 3,000/- (with slabs based on annual income).
Balance to be put under other allowances (which will be taxable).
From India, Delhi
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Salary less tax - CTC.xls
Exemption on Salary Components.doc