Dear All, I am attaching salary structure for higher grade . Kindly review and correct me if am wrong. Thanks in advance .
From India, Delhi
12From India, Delhi
Dear Swati,
I would like to re-structure the format. Since it is for higher grade where TDS rate is high. So it is advisable to make tax friendly structure. Note my observations:-
1. There are certain components which are re-reimbursement nature. If you don't pay them with monthly salary and pay against submission of bills/ documentary evidence (Monthly / Quarterly / Annually or as per company policy). Than that amount will not countable as Taxable Income and employee have to bear less TDS.
2. Generally the HRA should be 40% (Non-metro City) and 50% (Metro City), but you have shown above 50%.
3. Instead of paying monthly / annually, the LTA amount should also be paid as per LTA Policy Norms and Tax Benefit period (Block period concept). This will also reduce Tax burden of the employees.
Fellow senior members can suggest more views on the matter.
From India, Delhi
I would like to re-structure the format. Since it is for higher grade where TDS rate is high. So it is advisable to make tax friendly structure. Note my observations:-
1. There are certain components which are re-reimbursement nature. If you don't pay them with monthly salary and pay against submission of bills/ documentary evidence (Monthly / Quarterly / Annually or as per company policy). Than that amount will not countable as Taxable Income and employee have to bear less TDS.
2. Generally the HRA should be 40% (Non-metro City) and 50% (Metro City), but you have shown above 50%.
3. Instead of paying monthly / annually, the LTA amount should also be paid as per LTA Policy Norms and Tax Benefit period (Block period concept). This will also reduce Tax burden of the employees.
Fellow senior members can suggest more views on the matter.
From India, Delhi
Thanks Mr. Dangwal.
Kindly share with me Tax benefit on Conveyance & Medical allowance . As now both of them have been clubbed into Standard deduction.
How can I show these ( medical & conveyance) allowances in salary structure . I guess we can skip these components ( because of standard deduction).
Also, request to kindly share with me salary structure with minimum Tax burden on employee side and minimum liability on employer side.
From India, Delhi
Kindly share with me Tax benefit on Conveyance & Medical allowance . As now both of them have been clubbed into Standard deduction.
How can I show these ( medical & conveyance) allowances in salary structure . I guess we can skip these components ( because of standard deduction).
Also, request to kindly share with me salary structure with minimum Tax burden on employee side and minimum liability on employer side.
From India, Delhi
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