CTC Structure Review and Queries
Herewith, I have attached the CTC structure under review in my company. I want to clarify:
A. What is the permissible limit of City Compensatory Allowance? Currently, I am using it as a balancing figure.
B. Is PF applicable to City Compensatory Allowance?
C. Is PL a part of CTC? Is it valid or not?
Please provide some suggestions to make it more lucrative from the employee, company, and income tax point of view.
Regards,
Nishikant
From India, Surat
Acknowledge(0)
Amend(0)
Herewith, I have attached the CTC structure under review in my company. I want to clarify:
A. What is the permissible limit of City Compensatory Allowance? Currently, I am using it as a balancing figure.
B. Is PF applicable to City Compensatory Allowance?
C. Is PL a part of CTC? Is it valid or not?
Please provide some suggestions to make it more lucrative from the employee, company, and income tax point of view.
Regards,
Nishikant
From India, Surat
Acknowledge(0)Amend(0)
B. CCA is not considered for PF contribution. C. PL is not part of CTC in many organisations. But no guidelines are avl to arrive the CTC. It varies from company to company. Pon
From India, Lucknow
Acknowledge(0)Amend(0)
616From India, Lucknow
Acknowledge(0)Amend(0)
You can increase the HRA up to 40% of basic in the case of non-metros or 50% for metros so that the IT exemption can be claimed. Medical allowance can be increased to Rs. 1250 per month as it is tax-free subject to the production of bills. Similarly, LTA can be increased. Try to reduce special allowance as it is fully taxable.
Regards,
Pon
From India, Lucknow
Acknowledge(0)Amend(0)
Regards,
Pon
From India, Lucknow
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Compensation Structure.ppt
MODEL STRUCTURE OF COMPENSATION.do c