Dear Amit/Sandhya,
I was looking for some details on tax frienldy compensation structure and found some very valuable inputs here, given by you. Thanks for sharing them with all of us.
In my organisation, we have a very general compensation structure which does not help the employees in tax saving. From the next financial year, I plan to make some changes to it.
I will be grateful if you can tell me about the salary components which are tax friendly and do not attract FBT as well.
Awaiting your response.
Regards
Bhavna
From India, Delhi
33I was looking for some details on tax frienldy compensation structure and found some very valuable inputs here, given by you. Thanks for sharing them with all of us.
In my organisation, we have a very general compensation structure which does not help the employees in tax saving. From the next financial year, I plan to make some changes to it.
I will be grateful if you can tell me about the salary components which are tax friendly and do not attract FBT as well.
Awaiting your response.
Regards
Bhavna
From India, Delhi
Hi Bhavna,
Thanks for the appreciation...
But i think we have detailed the components very broadly, which are sufficient to prepare a Tax friendly salary structure...
Regarding FBT, most of these components attracts a nominal percentage of FBT to the organisation...
Wish you all the Best...
Regards,
Amit Seth.
From India, Ahmadabad
Thanks for the appreciation...
But i think we have detailed the components very broadly, which are sufficient to prepare a Tax friendly salary structure...
Regarding FBT, most of these components attracts a nominal percentage of FBT to the organisation...
Wish you all the Best...
Regards,
Amit Seth.
From India, Ahmadabad
Dear all,
This is an excellent post and valuable inputs shared by Amit & Amatya..
Besides the above components, in some cases company can pay the scholarship allowance to select employee's children at least 1.25 lacs p.a. and the company claims this as an deductible expenditure in their accounts.
Regards,
Rajat
From India, Pune
This is an excellent post and valuable inputs shared by Amit & Amatya..
Besides the above components, in some cases company can pay the scholarship allowance to select employee's children at least 1.25 lacs p.a. and the company claims this as an deductible expenditure in their accounts.
Regards,
Rajat
From India, Pune
Dear Amit, Congratulations on your promotion :D Must commend you on your valuable postings. Regards, Rajat
From India, Pune
From India, Pune
Hi All,
Can anybody plz tell me what should be the percentage of dearness allowance i.e DA. and how do we calculate it using the consumer price index. Also i want to know is DA and CCA the same??
Chanchala
From India, Pune
Can anybody plz tell me what should be the percentage of dearness allowance i.e DA. and how do we calculate it using the consumer price index. Also i want to know is DA and CCA the same??
Chanchala
From India, Pune
Hello Rajat Sir,
This is chanchala, Your session on 'S Curve' during the Citr HR meet was just excellent!!! :) Could not convey u that day since it was getting late and I had to leave....Hope to learn a lot of things from u r sessions in the future......
Thanks and regards,
Chanchala
From India, Pune
This is chanchala, Your session on 'S Curve' during the Citr HR meet was just excellent!!! :) Could not convey u that day since it was getting late and I had to leave....Hope to learn a lot of things from u r sessions in the future......
Thanks and regards,
Chanchala
From India, Pune
Dear All,
I have gone through all the posts in the thread. I would like to draw attention to some things-
1. If an employee claims for Vehicle maintainance allowance (Rs. 1200 pm generally), he cannot claim Conveyance allowance for tax exemption.
2. You can also include Children education allowance in your structure. Rs. 100 per child per month is tax exempt. If child is staying in hostel, Rs. 100+300 is tax exempt for every child.
3. Apart from this, Expenses borne by employees as tuition fee of their children is included under 80 (c) in financial year 2007-2008. So, at the time of TDS, you can consider this also.
4. One good way to give tax benefit to your employees is to give reasonable amount of PF contribution. This component and the interest earned on this is Tax benefit. This should not add cost to your company as you can show both components in CTC
Regards,
Ash.pgdm
From India, Hyderabad
I have gone through all the posts in the thread. I would like to draw attention to some things-
1. If an employee claims for Vehicle maintainance allowance (Rs. 1200 pm generally), he cannot claim Conveyance allowance for tax exemption.
2. You can also include Children education allowance in your structure. Rs. 100 per child per month is tax exempt. If child is staying in hostel, Rs. 100+300 is tax exempt for every child.
3. Apart from this, Expenses borne by employees as tuition fee of their children is included under 80 (c) in financial year 2007-2008. So, at the time of TDS, you can consider this also.
4. One good way to give tax benefit to your employees is to give reasonable amount of PF contribution. This component and the interest earned on this is Tax benefit. This should not add cost to your company as you can show both components in CTC
Regards,
Ash.pgdm
From India, Hyderabad
Hi Amit & Rajat,
Thanks for the valuable inputs to the topic.
I have one doubt regarding the PF contribution in the salary break up.
What the law says:
Can we include PF contribution from employer as well as emplyee in the CTC to increase the CTC amount or only employee contribution have to be shown.
I have seen, companies have their own way of doing this.
Regards
Neha
Thanks for the valuable inputs to the topic.
I have one doubt regarding the PF contribution in the salary break up.
What the law says:
Can we include PF contribution from employer as well as emplyee in the CTC to increase the CTC amount or only employee contribution have to be shown.
I have seen, companies have their own way of doing this.
Regards
Neha
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Break Up.xlsx
New Comart Salary Break up-Calculator.z ip