Dear Sumit,
As per the figures given above, the extra deduction of Rs. 1769 seems to be okay, as the employer contribution of Rs. 1769 is part of your CTC. One deduction is made for your contribution, and another is made to match your CTC. Now, the considerable point is on what negotiation you were appointed. You can ask your HR department to submit your CTC in phases as below:
Monthly:
1. Basic
2. HRA
3. Conveyance
4. Special Pay
5. Medical Allowance
Total
Reimbursement:
6. LTA
Retirement Benefits:
7. PF (12%)
8. Gratuity
Fixed Cost to Company
Moreover, your Income Tax also seems to be a little bit on the higher side. According to my calculation, your Income Tax should be:
(A) Total CTC = 450000
(B) Less: Various deductions/benefits, etc.
1. Tax-Free Limit = 250000
2. Conveyance = 19200
3. Medical Allowance = 15000
4. Deductions 80C = 150000 (you have to submit proof of saving under this head)
Total Deductions (B) = 434000
Taxable Income (C) (A-B) = 16000 (Tax @ 10% = 1600 for the whole year)
In addition to the above, you can save under HRA, which depends on your residence status (consult with your HR/Payroll).
Please review and let me know if you need any further clarification.
Thank you.
From India, Delhi
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97As per the figures given above, the extra deduction of Rs. 1769 seems to be okay, as the employer contribution of Rs. 1769 is part of your CTC. One deduction is made for your contribution, and another is made to match your CTC. Now, the considerable point is on what negotiation you were appointed. You can ask your HR department to submit your CTC in phases as below:
Monthly:
1. Basic
2. HRA
3. Conveyance
4. Special Pay
5. Medical Allowance
Total
Reimbursement:
6. LTA
Retirement Benefits:
7. PF (12%)
8. Gratuity
Fixed Cost to Company
Moreover, your Income Tax also seems to be a little bit on the higher side. According to my calculation, your Income Tax should be:
(A) Total CTC = 450000
(B) Less: Various deductions/benefits, etc.
1. Tax-Free Limit = 250000
2. Conveyance = 19200
3. Medical Allowance = 15000
4. Deductions 80C = 150000 (you have to submit proof of saving under this head)
Total Deductions (B) = 434000
Taxable Income (C) (A-B) = 16000 (Tax @ 10% = 1600 for the whole year)
In addition to the above, you can save under HRA, which depends on your residence status (consult with your HR/Payroll).
Please review and let me know if you need any further clarification.
Thank you.
From India, Delhi
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