Hi Rubina,
Taxable amount - Basic, other allowance.
Non taxable - Food coupons, Conveyance, Medical allowance (15K max), LTA (produce the bills),
in other allowance - if the employee has children (max. 2) he /she can get the Child education allowance upto 100/- per month per kid. is tax free. If the employee is in sales section - Petrol allowance is also tax free.
HRA - (actual HRA / 40% of Basic/Rentpaid - 10% basic) which ever is less is tax free.
hope this clears your doubt.
if u want more details - call me +919901921296 or mail:
cheers
suneel.
From India, Bangalore
4Taxable amount - Basic, other allowance.
Non taxable - Food coupons, Conveyance, Medical allowance (15K max), LTA (produce the bills),
in other allowance - if the employee has children (max. 2) he /she can get the Child education allowance upto 100/- per month per kid. is tax free. If the employee is in sales section - Petrol allowance is also tax free.
HRA - (actual HRA / 40% of Basic/Rentpaid - 10% basic) which ever is less is tax free.
hope this clears your doubt.
if u want more details - call me +919901921296 or mail:
cheers
suneel.
From India, Bangalore
Dear Pawan,
You are showing the Spl.All. head in your Projected salary structure. the above allowance will also cover with purview of wages under E.P.F. Act.
i.e. if any employee getting Basic+da wages Rs.5000/= per month & Spl.All. Rs.1000/= per month the P.F. Contribution liability will fix on both heads.
So that you can replace the Spl.All. with Oth.All. for save extra contribution liability.
with regards,
S.Singh
From India, Jaipur
You are showing the Spl.All. head in your Projected salary structure. the above allowance will also cover with purview of wages under E.P.F. Act.
i.e. if any employee getting Basic+da wages Rs.5000/= per month & Spl.All. Rs.1000/= per month the P.F. Contribution liability will fix on both heads.
So that you can replace the Spl.All. with Oth.All. for save extra contribution liability.
with regards,
S.Singh
From India, Jaipur
Dear Indrani,
Please note the below
1. Basic + Da = 40% of total gross salary
2. HRA - 40% basic ( there is income tax exemption upto 40%)
3. Conveyance - 800 or more (There is a income tax exepmtion up to 800/-)
4. Medical Expenses ( there is a income tax exemption please check)
5. Special Allowance = Balance amount
Rgds,
hosmath
From India, Bangalore
Please note the below
1. Basic + Da = 40% of total gross salary
2. HRA - 40% basic ( there is income tax exemption upto 40%)
3. Conveyance - 800 or more (There is a income tax exepmtion up to 800/-)
4. Medical Expenses ( there is a income tax exemption please check)
5. Special Allowance = Balance amount
Rgds,
hosmath
From India, Bangalore
Hi friends,
I have seen all thye comments and i proposes the following :
1. As per salary norms it has not been define anywhere what salary structure one company can fix, but HRA should not be greater than 60% in any case first.
2. Few structure has already been define in FBT, but if any company wants to give more than the prescribed amount, in that case its upto the employer whether they take FBT from employees or not on bills. But bill are required otherwise it would presumed that it is part of salary which would be taxable amount.
3. There is no any difinition of perks/cash part as per law, its totally depends upon the employer how they want to pay.
4. Now a days various companies are paying friendly salary structure, which attracts employees.
Regards
Arun Kumar
From India, Delhi
I have seen all thye comments and i proposes the following :
1. As per salary norms it has not been define anywhere what salary structure one company can fix, but HRA should not be greater than 60% in any case first.
2. Few structure has already been define in FBT, but if any company wants to give more than the prescribed amount, in that case its upto the employer whether they take FBT from employees or not on bills. But bill are required otherwise it would presumed that it is part of salary which would be taxable amount.
3. There is no any difinition of perks/cash part as per law, its totally depends upon the employer how they want to pay.
4. Now a days various companies are paying friendly salary structure, which attracts employees.
Regards
Arun Kumar
From India, Delhi
Dear Mr Hosmath Thank you for your guidance .If I wouldnt have received inputs from you wonderful people I would have messed it up Thanks and Regards Indrani Chakraborty
From India, Pune
From India, Pune
Dear Mr Arun Kumar
Thank you for clearing my doubt on HRA .We have decided to keep the HRA 40% of the basic .Iam trying my level best to make the structure employee friendly but then again I have to keep in mund the FBT part also .
Thank you once again for your inputs
Regards
Indrani Chakraborty
From India, Pune
Thank you for clearing my doubt on HRA .We have decided to keep the HRA 40% of the basic .Iam trying my level best to make the structure employee friendly but then again I have to keep in mund the FBT part also .
Thank you once again for your inputs
Regards
Indrani Chakraborty
From India, Pune
Dear Indrani,
This is an extremely good effort. Please note as far as medical goes you can give Rs.15000/- per annum. If the employee submits the medical bills then he can avail tax exemption for the same.
40% of basic as HRA is ok for Pune this being a Non Metro City. Apart from this you can also add a component called childrens education allowance. On submitting tution bills the amount can also be reduced from taxable income.
On what basis are you giving Uniform allowance. Effective FBT regime this comes under the head Staff Welfare and attracts taxes. You should get this confirmed by a qualifed tax consultant.
Cheers and keep the good work going.
Dwipna
From India, Calcutta
This is an extremely good effort. Please note as far as medical goes you can give Rs.15000/- per annum. If the employee submits the medical bills then he can avail tax exemption for the same.
40% of basic as HRA is ok for Pune this being a Non Metro City. Apart from this you can also add a component called childrens education allowance. On submitting tution bills the amount can also be reduced from taxable income.
On what basis are you giving Uniform allowance. Effective FBT regime this comes under the head Staff Welfare and attracts taxes. You should get this confirmed by a qualifed tax consultant.
Cheers and keep the good work going.
Dwipna
From India, Calcutta
Dear Dwipna
Thank you so much for your valuable inputs .I work for a software company so I think I cannot put uniform allowance (correct me if Iam wrong) as this allowance can be given only to factory workers .Can you tell me whther I can put something called "washing allowance" instead? and whther that washing allowance will come under the purview of FBT or not
Keep posting
Thanks and Regards
Indrani Chakrabprty
From India, Pune
Thank you so much for your valuable inputs .I work for a software company so I think I cannot put uniform allowance (correct me if Iam wrong) as this allowance can be given only to factory workers .Can you tell me whther I can put something called "washing allowance" instead? and whther that washing allowance will come under the purview of FBT or not
Keep posting
Thanks and Regards
Indrani Chakrabprty
From India, Pune
Dear all, I want to ask one more thing as i am working in a metro city, can i give some special benefits to my employees in their salary. Regards, Rubina Ansari
From India, Delhi
From India, Delhi
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