Hi, Can someone share me the list of taxable and non-taxable salary components? I am planning to change the salary structure of my company and include as much non-taxable components I can.
I am attaching the Excel sheet of my present salary structure and calculations. I would appreciate if you can update the file and add the components.
Thanks in advance.
From India, Kolkata
1I am attaching the Excel sheet of my present salary structure and calculations. I would appreciate if you can update the file and add the components.
Thanks in advance.
From India, Kolkata
The pay structure as enclosed is not scientific and lot of errors. You cannot deduct Employee's portion of PF & ESI from employee's salary. The PF Contribution on the basis of latest Supreme Court Verdict should be on all items except HRA in your present case. Monthly gross salary is actually less than 10,000/- ( Which is CTC) which should reflect in payroll and payslip.
Income Tax benefit components in the salary structure is not required at the level of salary you have posted as example.
Please consult with any expert before you further proceed about the projects as it will be required lot of inputs specially in the context of different codes related to labour laws which will be introduced in future.
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Income Tax benefit components in the salary structure is not required at the level of salary you have posted as example.
Please consult with any expert before you further proceed about the projects as it will be required lot of inputs specially in the context of different codes related to labour laws which will be introduced in future.
S K Bandyopadhyay ( Howrah, WB)
From India, New Delhi
Basic + DA 3,000
HRA 1,500
Travelling All. 800
Tech All. 1,500
City Compensatory All. 1,000
Personal Pay 2,200
Dear Sir,
You can in increase the Transport Allowance as Rs.1600/- By Removing personal pay (Taxable) you can include Children Educational Allowance :( Non Tax able) Uniform Allowance,(Non Taxable) Reimbursement of medical expenses (Non Taxable) .Regards, Ganapathy V
From India
HRA 1,500
Travelling All. 800
Tech All. 1,500
City Compensatory All. 1,000
Personal Pay 2,200
Dear Sir,
You can in increase the Transport Allowance as Rs.1600/- By Removing personal pay (Taxable) you can include Children Educational Allowance :( Non Tax able) Uniform Allowance,(Non Taxable) Reimbursement of medical expenses (Non Taxable) .Regards, Ganapathy V
From India
Hi Sandipg
First, your Rs.10,000 gross salary appears defective as it might be less than the 'Minimum Wages' prescribed in WB. Pl.check your state govt's notification on this. That apart, if this is the gross salary the incumbent not going to be in 'taxable income' drawing group as the gross works out to Rs.1,20,000 only which is far below the taxable limit of Rs.2,50,000 p.a. for FY 2019-20.
From India, Bangalore
First, your Rs.10,000 gross salary appears defective as it might be less than the 'Minimum Wages' prescribed in WB. Pl.check your state govt's notification on this. That apart, if this is the gross salary the incumbent not going to be in 'taxable income' drawing group as the gross works out to Rs.1,20,000 only which is far below the taxable limit of Rs.2,50,000 p.a. for FY 2019-20.
From India, Bangalore
@loginmiraclelogistics, the Excel sheet just an illustration. you did not understood my question. instead of only looking at the figures in the Excel sheet, please answer the question. The Excel sheet figure can be anything. I repeat, it's just an illustration. I have just entered a random figure.
From India, Kolkata
From India, Kolkata
@ANNONYMOUS,
dear Ganapathy V, don't you think Transport Allowance , Children Educational Allowance , Uniform Allowance, Reimbursement of medical expenses doesn't exist anymore after Standard Deduction increased to Rs. 50000?
From India, Kolkata
dear Ganapathy V, don't you think Transport Allowance , Children Educational Allowance , Uniform Allowance, Reimbursement of medical expenses doesn't exist anymore after Standard Deduction increased to Rs. 50000?
From India, Kolkata
It appears that Sandipg1977 is Account Manager and obviously has expertise about I TAX . Then what is the purpose of raising the queries. From your last posting it is also clear about your knowledge base.
What is required in the pay structure as you have posted at random ( as per you) needs some re-look for the following reasons :-
1.0 As per Feb,2019 Supreme Court Verdict - it is now essential to increase % of Basic in respect of Gross salary (must be more) specially up to 15,000/- PF Gross ( Basic/Basic + DA ).
2.0 Also required to consider the proposed definition of wage under Social security code.
3.0 There is no common element in salary structure on which all taxable employees will get ITAX rebate. HRA as per conditions, LTA as per conditions , Car related expense as per conditions etc. will be applicable for higher level taxable salaried employees. If you know any other thing and based on Financial budget scheduled on 01.02.2020 , you please act accordingly.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
What is required in the pay structure as you have posted at random ( as per you) needs some re-look for the following reasons :-
1.0 As per Feb,2019 Supreme Court Verdict - it is now essential to increase % of Basic in respect of Gross salary (must be more) specially up to 15,000/- PF Gross ( Basic/Basic + DA ).
2.0 Also required to consider the proposed definition of wage under Social security code.
3.0 There is no common element in salary structure on which all taxable employees will get ITAX rebate. HRA as per conditions, LTA as per conditions , Car related expense as per conditions etc. will be applicable for higher level taxable salaried employees. If you know any other thing and based on Financial budget scheduled on 01.02.2020 , you please act accordingly.
S K Bandyopadhyay ( WB, Howrah)
From India, New Delhi
Fully Taxable Components:
Basic Salary: As the cornerstone of the salary structure, the basic salary is fully taxable. It constitutes the core remuneration paid by employers to employees for their professional services.
Medical Allowance: Any allowance provided to cover medical expenses is fully taxable. Despite being a fixed part of the salary, medical allowances are subject to taxation.
Conveyance Allowance: Also known as transport allowance, this allowance for commuting to and from work is fully taxable, with limited exemptions available.
Dearness Allowance (DA): Designed to offset the impact of inflation, DA is fully taxable and is calculated based on a fixed percentage of the basic salary.
City Compensatory Allowance: Provided to employees in metropolitan areas to mitigate the high cost of living, <a href="https://fnafpro.io">fnaf</a> CCA is fully taxable under Indian tax laws.
Project Allowance and Overtime Allowance: Temporary allowances such as project allowances and overtime allowances are fully taxable and are provided to employees to cover project-related costs or compensate for additional work hours.
Partially Taxable Components:
House Rent Allowance (HRA): While HRA enjoys partial tax exemption, it is subject to certain conditions. Employees residing in rented accommodation can claim exemptions based on specified criteria outlined in the Income Tax Act.
Leave Travel Allowance (LTA): Partially taxable, LTA provides exemptions for actual travel costs incurred by employees and their families, subject to specific terms and conditions.
Children's Education Allowance and Hostel Expenditure Allowance: Partially taxable components aimed at supporting educational expenses for employees' children, subject to predefined limits and conditions.
From Vietnam, Hanoi
Basic Salary: As the cornerstone of the salary structure, the basic salary is fully taxable. It constitutes the core remuneration paid by employers to employees for their professional services.
Medical Allowance: Any allowance provided to cover medical expenses is fully taxable. Despite being a fixed part of the salary, medical allowances are subject to taxation.
Conveyance Allowance: Also known as transport allowance, this allowance for commuting to and from work is fully taxable, with limited exemptions available.
Dearness Allowance (DA): Designed to offset the impact of inflation, DA is fully taxable and is calculated based on a fixed percentage of the basic salary.
City Compensatory Allowance: Provided to employees in metropolitan areas to mitigate the high cost of living, <a href="https://fnafpro.io">fnaf</a> CCA is fully taxable under Indian tax laws.
Project Allowance and Overtime Allowance: Temporary allowances such as project allowances and overtime allowances are fully taxable and are provided to employees to cover project-related costs or compensate for additional work hours.
Partially Taxable Components:
House Rent Allowance (HRA): While HRA enjoys partial tax exemption, it is subject to certain conditions. Employees residing in rented accommodation can claim exemptions based on specified criteria outlined in the Income Tax Act.
Leave Travel Allowance (LTA): Partially taxable, LTA provides exemptions for actual travel costs incurred by employees and their families, subject to specific terms and conditions.
Children's Education Allowance and Hostel Expenditure Allowance: Partially taxable components aimed at supporting educational expenses for employees' children, subject to predefined limits and conditions.
From Vietnam, Hanoi
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