This is a great forum. Lot of information. Just amazing.
I got an offer from a company which looks like this
With the monthly gross salary Rs 93056
I have several questions on this.
1) What would be my NET PAY?
2) What will be deposited in my bank account monthly?
3) LTA seems to be way to high? Especially when I cannot claim anything other than fares? Is LTA part of the of the money deposited monthly or should I claim it at the end of the year? If I have to claim this yearly does this mean if I were to leave the job before that I would not get anything?
4) If I don't claim the LTA does the company keep it or they tax it and give the rest of the unclaimed money after a year?
5) In India does the tax gets deducted monthly from the take home pay and the rest gets deopsited in the bank account?
6) Is medical allowance part of the amount deposited monthly or do I need to produce receipts to even claim it?
7) Company said I am eligible after 3yrs for Gratuity but my CTC includes this? Does this mean it is a waste if I leave the company before 3yrs?
Sorry I know there are so many questions. I will be extremely grateful for your replies.
Thanks.
From United States, Schaumburg
I got an offer from a company which looks like this
With the monthly gross salary Rs 93056
I have several questions on this.
1) What would be my NET PAY?
2) What will be deposited in my bank account monthly?
3) LTA seems to be way to high? Especially when I cannot claim anything other than fares? Is LTA part of the of the money deposited monthly or should I claim it at the end of the year? If I have to claim this yearly does this mean if I were to leave the job before that I would not get anything?
4) If I don't claim the LTA does the company keep it or they tax it and give the rest of the unclaimed money after a year?
5) In India does the tax gets deducted monthly from the take home pay and the rest gets deopsited in the bank account?
6) Is medical allowance part of the amount deposited monthly or do I need to produce receipts to even claim it?
7) Company said I am eligible after 3yrs for Gratuity but my CTC includes this? Does this mean it is a waste if I leave the company before 3yrs?
Sorry I know there are so many questions. I will be extremely grateful for your replies.
Thanks.
From United States, Schaumburg
Your Adjusted salary after HRA exemption (Rs.172,504) and Conveyance allowance (Rs.9,600) comes to Rs.862,088.
There will be further deduction from this figure as Professional tax Rs.2,400 and the figure will be Rs.859,688.
This is assuming that you are staying at a rented accomodation with a house rent of Rs. 19,167 and you are fully consuming the Medical benefits.
Now comes the investments which can be made to max. Rs.100,000 and get tax deductions. The Net Taxable income comes to nearly Rs.759,688.
The Annual Income tax works out to Rs.177,907 and the Surcharge to Rs.3,558. Net Tax payable will be Rs.181,465.
The Rest of the amount is totally yours dear and that's a lot of money indeed.
This calculation will give you little clue about how to go about your take home after putting enough money in your investments and stocks for tax savings purposes.
Hope this helped.
Regards,
Sudip
There will be further deduction from this figure as Professional tax Rs.2,400 and the figure will be Rs.859,688.
This is assuming that you are staying at a rented accomodation with a house rent of Rs. 19,167 and you are fully consuming the Medical benefits.
Now comes the investments which can be made to max. Rs.100,000 and get tax deductions. The Net Taxable income comes to nearly Rs.759,688.
The Annual Income tax works out to Rs.177,907 and the Surcharge to Rs.3,558. Net Tax payable will be Rs.181,465.
The Rest of the amount is totally yours dear and that's a lot of money indeed.
This calculation will give you little clue about how to go about your take home after putting enough money in your investments and stocks for tax savings purposes.
Hope this helped.
Regards,
Sudip
Further to my earlier message:
-LTA: You will be eligible for LTA only when you complete one full year of service for this organisation. The amount will be deposited at the end of 2nd year. You may claim the amount and get tax benefits by producing travel documents every 2 block years and not every year. Bad - isn't it?
If you don't claim the LTA in 2 block years then that will be considered as a Taxable income.
-Medical allowance: This is typically the OPD charges for you and your immediate family inclusive of parents. Max allowed is Rs.15000. You need to produce medical bills with the name of the patient and doctor peridically to get the reimbursement.
- Gratuity: Normally companies give Gratuity only once the employee completes 5 years of service. The amount will be calculated based upon the latest Basic salary. If you leave earlier than that then zero.
Regards,
Sudip
-LTA: You will be eligible for LTA only when you complete one full year of service for this organisation. The amount will be deposited at the end of 2nd year. You may claim the amount and get tax benefits by producing travel documents every 2 block years and not every year. Bad - isn't it?
If you don't claim the LTA in 2 block years then that will be considered as a Taxable income.
-Medical allowance: This is typically the OPD charges for you and your immediate family inclusive of parents. Max allowed is Rs.15000. You need to produce medical bills with the name of the patient and doctor peridically to get the reimbursement.
- Gratuity: Normally companies give Gratuity only once the employee completes 5 years of service. The amount will be calculated based upon the latest Basic salary. If you leave earlier than that then zero.
Regards,
Sudip
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