Please suggest me a salary breakup of 25000/- per month salary and after all the break up how much amount will still be taxable. Thanks
From India, Bhopal
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1From India, Bhopal
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Hi Shilpi,
The contents of the salary breakup are as follows. You can prepare it according to your own preferences. HRA should be 40 to 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility is provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim, or it depends on company policy.
- Ex-Gratia/Bonus = A fixed bonus amount
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this information helps you prepare the necessary documents on your end.
Regards,
Amit Seth.
From India, Ahmadabad
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The contents of the salary breakup are as follows. You can prepare it according to your own preferences. HRA should be 40 to 60% of the basic salary.
- Basic
- HRA
- TA
- Other Allowance
- Mobile Reimbursement per Month
- Gross Per Month = Sum of all the above
- Gross Per Annum = 12 * Gross/Month
- PF Contribution = 12% of Basic/Annum
- ESI Contribution = 4.75% of Gross/Annum
- Medical = The mediclaim facility is provided to employees who are not covered under ESI, as the maximum ceiling for ESI is 10000/Month. Anything exceeding this will be covered under Mediclaim, or it depends on company policy.
- Ex-Gratia/Bonus = A fixed bonus amount
- Annual Fixed Gross Cost = Gross/Annum + Ex-gratia
- Annual Total Cost = AFGC + PF + ESIC
- Annual total cost is also referred to as CTC.
I hope this information helps you prepare the necessary documents on your end.
Regards,
Amit Seth.
From India, Ahmadabad
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Thanks a lot. I would like to know as i am working in Indore , is city compensation allowance is taxable here or we can get exemption from tax on this allowance.
From India, Bhopal
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From India, Bhopal
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Hi Amit,
I have seen some really good suggestions in some old posts that you have given to people regarding their salary breakups. Can you please help me figure out a breakup for a salary where the company has just given the total fixed sum as Rs. 100,000/- per month?
Please help me with some inputs on what all components should be included in the breakup to maximize the monthly take-home and minimize the tax liability.
Here are a few details about the company: it's a small company with only 5 employees in India, so I am not sure if they are bound to take care of PF, professional tax, Gratuity, Superannuation, etc., or not. In either case, what percentages should be assigned to BASIC, HRA, Medical allowance, etc., to minimize the taxes.
Would appreciate any help at the earliest possible. Thanks!
Regards,
AM
From United States, Belmont
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I have seen some really good suggestions in some old posts that you have given to people regarding their salary breakups. Can you please help me figure out a breakup for a salary where the company has just given the total fixed sum as Rs. 100,000/- per month?
Please help me with some inputs on what all components should be included in the breakup to maximize the monthly take-home and minimize the tax liability.
Here are a few details about the company: it's a small company with only 5 employees in India, so I am not sure if they are bound to take care of PF, professional tax, Gratuity, Superannuation, etc., or not. In either case, what percentages should be assigned to BASIC, HRA, Medical allowance, etc., to minimize the taxes.
Would appreciate any help at the earliest possible. Thanks!
Regards,
AM
From United States, Belmont
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Hi Amit,
Please let me know how we will decide basic salary. Is it any percentage of CTC? I can calculate all things on the basis of the basic salary. So please help me and give me your precious suggestion on how I should decide basic salary based on different salary breakups.
Thanks,
Shuchi
From India, Delhi
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Please let me know how we will decide basic salary. Is it any percentage of CTC? I can calculate all things on the basis of the basic salary. So please help me and give me your precious suggestion on how I should decide basic salary based on different salary breakups.
Thanks,
Shuchi
From India, Delhi
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Hi Anshul,
For your reference, I have appended a salary calculator. It lists out the components that should be part of the salary considering that the company is not covered for PF, ESI, etc. All you need to do is enter the Annual Salary in cell B7. To reduce the tax liability, you can introduce reimbursements for telephone usage, vehicle running & maintenance, and Sodexo coupons. All of these are tax-free if bills are submitted for the specified amount.
If you need any clarifications, please feel free to ask.
From India, Gurgaon
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For your reference, I have appended a salary calculator. It lists out the components that should be part of the salary considering that the company is not covered for PF, ESI, etc. All you need to do is enter the Annual Salary in cell B7. To reduce the tax liability, you can introduce reimbursements for telephone usage, vehicle running & maintenance, and Sodexo coupons. All of these are tax-free if bills are submitted for the specified amount.
If you need any clarifications, please feel free to ask.
From India, Gurgaon
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what abt pf & esi deductions not mentioned in the attachment. Can u kindly provide the same for it.
From India, Bangalore
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From India, Bangalore
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hi ur salary break up was is of great help, but if u could send it with pf & other deduction as well as showing take home amount, it would b of great help. MP
From India, Mumbai
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From India, Mumbai
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Revised Version:
Please find the new version of Salary Master with new features.
This program is totally user-friendly. You can enter your company name, address, departments, and designations. You can set categories of fixed earnings, other earnings, fixed deductions, and other deductions in the salary slip. Additionally, you can set limits for ESI, P.F., Income Tax Slabs for men and women, surcharge settings, and professional tax.
The program is designed in two modes:
1. In Auto mode, the salary slip will be generated based on the predefined data in the "Company Detail Sheet."
2. In Manual mode, the salary slip will be generated based on manually entered details, disregarding the data in the "Company Detail Sheet."
For example, regular employees can be put in Auto mode to generate their salary slips according to company policy, whereas temporary employees or those not following regular rules can be put in Manual mode for manual data entry.
The software includes:
1. Attendance Register
2. Payroll Register
3. Generate Salary Slip
4. Track Employees' Leave History
5. Track Income Tax of All Employees
6. Print Leave History of Employees
7. Overtime Monitor
8. Master Data Sheet of All Employees
9. Leave Calculation Sheet
10. ESI Calculation (Set Your Requirements)
11. P.F Calculation
12. Pension Scheme (not more than 541 Rs. submission)
13. TDS Calculation
14. Annual Salary Statement of Employee and Employer
15. Employer Monthly Salary Statement
16. Income Tax Calculations
17. Generation of Form No-6 (For ESIC)
18. Generation of Form No-3A (PF)
19. Generation of Form No-6A (PF)
Limitation: You must monitor employee leave each month; when it goes into a minus, a red indication will appear on that cell, requiring you to put it on LWP to avoid negative leave affecting salary slip generation.
Required Attention: Please be vigilant about Auto and Manual mode and P.F selection.
If you find this useful, don't forget to drop a thanks.
Download: [Free File Hosting & Video Downloads, Free File Sharing, Online Friends Network - Ziddu](http://www.ziddu.com/download/8908540/SalaryMaster-NewVersion-10.3.2010.zip.html)
Please follow the steps below to run the program.
First, open the "Company Detail Sheet":
1. Open the "Company Detail Sheet."
2. Change the company name and address.
3. Update salary descriptions: customize the categories for fixed earnings, reimbursements, and other deductions as per your requirements.
4. Enter percentages based on company policies for salary generation (e.g., Basic = 25% of gross).
5. Enter ESI and P.F percentages and select P.F options.
6. Define professional tax slabs.
7. Enter department names and employee designations.
8. Input tax slabs for men and women.
Next, open the "Master Data Sheet":
1. Enter employee details like name, gender, and employee code.
2. Select designation and department.
3. Enter PAN number, bank details, P.F. number, ESI number, DOB, DOJ, and location.
4. Input monthly gross salary.
5. Choose between Auto or Manual mode for salary generation.
6. Enter OT details if applicable.
7. Record leave information.
8. Note rent paid by employees for exemptions.
9. Enter amounts for section 80C and 80D deductions.
Then, access the "Attendance Sheet" for the particular month:
1. Enter employee attendance, leaves, and holidays.
2. Record any overtime.
Finally, open the "Payroll Sheet" for the specific month:
1. Reimbursement and deduction details need to be entered, salary will be generated based on the data.
2. Enter the amount paid and select the payment type.
Most of the remaining sheets are for monitoring or summaries.
From India, New Delhi
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Please find the new version of Salary Master with new features.
This program is totally user-friendly. You can enter your company name, address, departments, and designations. You can set categories of fixed earnings, other earnings, fixed deductions, and other deductions in the salary slip. Additionally, you can set limits for ESI, P.F., Income Tax Slabs for men and women, surcharge settings, and professional tax.
The program is designed in two modes:
1. In Auto mode, the salary slip will be generated based on the predefined data in the "Company Detail Sheet."
2. In Manual mode, the salary slip will be generated based on manually entered details, disregarding the data in the "Company Detail Sheet."
For example, regular employees can be put in Auto mode to generate their salary slips according to company policy, whereas temporary employees or those not following regular rules can be put in Manual mode for manual data entry.
The software includes:
1. Attendance Register
2. Payroll Register
3. Generate Salary Slip
4. Track Employees' Leave History
5. Track Income Tax of All Employees
6. Print Leave History of Employees
7. Overtime Monitor
8. Master Data Sheet of All Employees
9. Leave Calculation Sheet
10. ESI Calculation (Set Your Requirements)
11. P.F Calculation
12. Pension Scheme (not more than 541 Rs. submission)
13. TDS Calculation
14. Annual Salary Statement of Employee and Employer
15. Employer Monthly Salary Statement
16. Income Tax Calculations
17. Generation of Form No-6 (For ESIC)
18. Generation of Form No-3A (PF)
19. Generation of Form No-6A (PF)
Limitation: You must monitor employee leave each month; when it goes into a minus, a red indication will appear on that cell, requiring you to put it on LWP to avoid negative leave affecting salary slip generation.
Required Attention: Please be vigilant about Auto and Manual mode and P.F selection.
If you find this useful, don't forget to drop a thanks.
Download: [Free File Hosting & Video Downloads, Free File Sharing, Online Friends Network - Ziddu](http://www.ziddu.com/download/8908540/SalaryMaster-NewVersion-10.3.2010.zip.html)
Please follow the steps below to run the program.
First, open the "Company Detail Sheet":
1. Open the "Company Detail Sheet."
2. Change the company name and address.
3. Update salary descriptions: customize the categories for fixed earnings, reimbursements, and other deductions as per your requirements.
4. Enter percentages based on company policies for salary generation (e.g., Basic = 25% of gross).
5. Enter ESI and P.F percentages and select P.F options.
6. Define professional tax slabs.
7. Enter department names and employee designations.
8. Input tax slabs for men and women.
Next, open the "Master Data Sheet":
1. Enter employee details like name, gender, and employee code.
2. Select designation and department.
3. Enter PAN number, bank details, P.F. number, ESI number, DOB, DOJ, and location.
4. Input monthly gross salary.
5. Choose between Auto or Manual mode for salary generation.
6. Enter OT details if applicable.
7. Record leave information.
8. Note rent paid by employees for exemptions.
9. Enter amounts for section 80C and 80D deductions.
Then, access the "Attendance Sheet" for the particular month:
1. Enter employee attendance, leaves, and holidays.
2. Record any overtime.
Finally, open the "Payroll Sheet" for the specific month:
1. Reimbursement and deduction details need to be entered, salary will be generated based on the data.
2. Enter the amount paid and select the payment type.
Most of the remaining sheets are for monitoring or summaries.
From India, New Delhi
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The in-hand salary largely depends on the salary package components like basic salary, HRA, etc. It cannot be identified simply by CTC amount. I found a good salary in-hand calculator here: [In Hand or Take Home Salary Calculator for India | AM22 Technologies](http://am22tech.com/s/22/Tools/InHandSalaryIndia.aspx). Just enter the basic salary of your salary package, and the calculator would calculate the rest of the components based on common package structures. If you want, you can modify other values as per your own salary structure. The calculator also suggests various options on how to increase your monthly in-hand salary by making full use of tax rebates. Hope you will like it.
From India, Delhi
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From India, Delhi
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Hi, I have gone through the discussion; it's really helpful to me too. However, I have a small doubt. Does the slab of a 100,000 salary also come under PF and ESI contributions? If so, please tell me what is the calculation percentage.
Regards,
Hema
From India, Bangalore
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Regards,
Hema
From India, Bangalore
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