Dear All,
We are consultancy , can u suggest the best components which i can add in my salary structure , which would help my employees save tax to the maximum .
The salaries in my company ranges from 2L - 6 L per annum for junior to middle level , and 6L - 12 L for senior level.
Thanks
Parul
From India, Mumbai
We are consultancy , can u suggest the best components which i can add in my salary structure , which would help my employees save tax to the maximum .
The salaries in my company ranges from 2L - 6 L per annum for junior to middle level , and 6L - 12 L for senior level.
Thanks
Parul
From India, Mumbai
Hi Parul,
The contents of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA 40 -60% of Basic is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
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 provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, LTA and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
496The contents of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA 40 -60% of Basic is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
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 provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Apart from this Food coupons, LTA and Furnishing items are included in their CTC.
Hope it must help you to clear your queries up to some extent.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Parul,
Amount Reimbursement is also a part of taxable salary but they are exempted from taxes up to a certain level..
Telephone bills, petrol, driver and vehicle maintenance bill amounts completely tax free? if not then to what extent...
Telephone bills - 30,000/- per annum
Petrol - 72,000/- per annum
Driver salary - 60,000/- per annum
Vehicle maintenance - 25,000/- per annum..
LTA
Books and Periodicals - 25,000/- Per annum
Hope these are the sufficient information related with same..
Regards,
Amit Seth.
From India, Ahmadabad
Amount Reimbursement is also a part of taxable salary but they are exempted from taxes up to a certain level..
Telephone bills, petrol, driver and vehicle maintenance bill amounts completely tax free? if not then to what extent...
Telephone bills - 30,000/- per annum
Petrol - 72,000/- per annum
Driver salary - 60,000/- per annum
Vehicle maintenance - 25,000/- per annum..
LTA
Books and Periodicals - 25,000/- Per annum
Hope these are the sufficient information related with same..
Regards,
Amit Seth.
From India, Ahmadabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls