My query is about the allowance and its calculation, including FBT benefits given to employees as part of their CTC. Can anyone explain the salary breakup of 50,000 as follows:
Basic
HRA 50%
Conveyance 800
PF (employee) 780
PF (employer) 780
Additionally, I would like to know the details of the following allowances:
- Helper Allowance
- Uniform Allowance
- LTA
- Medical
- Special Allowance
- Education Allowance
From India, Gurgaon
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7Basic
HRA 50%
Conveyance 800
PF (employee) 780
PF (employer) 780
Additionally, I would like to know the details of the following allowances:
- Helper Allowance
- Uniform Allowance
- LTA
- Medical
- Special Allowance
- Education Allowance
From India, Gurgaon
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Hi,
Here it goes: Basic (@40% of CTC) = 20000 HRA (@50% of Basic) = 10000 Conv. Allow = 800 (tax exempt up to 9600 pa) Medical Allow = 1250 (IT Exempt up to 15000 pa) Special Allow = 5000 Children Education Allow = 200 (Maxim 2400 pa (2 children); tax exempt subjected to School/college going children) PF = 780 + 780 = 1560. Helper Allow = 2000 Uniform Allow = 3000 LTA = 6190 (tax exempt twice in a block of 4 yrs) Hope this will help you out.
Regards, Rachna Hyderabad
From India, Hyderabad
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Here it goes: Basic (@40% of CTC) = 20000 HRA (@50% of Basic) = 10000 Conv. Allow = 800 (tax exempt up to 9600 pa) Medical Allow = 1250 (IT Exempt up to 15000 pa) Special Allow = 5000 Children Education Allow = 200 (Maxim 2400 pa (2 children); tax exempt subjected to School/college going children) PF = 780 + 780 = 1560. Helper Allow = 2000 Uniform Allow = 3000 LTA = 6190 (tax exempt twice in a block of 4 yrs) Hope this will help you out.
Regards, Rachna Hyderabad
From India, Hyderabad
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Thanks, Its right but I wanna know calculation of other allowance. Because I have to calculate packages for 20-25 employees for my company. I need % , calculation of FBT. Etc…..
From India, Gurgaon
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From India, Gurgaon
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Hi Meenu,
Let me know what other allowances you want to calculate.
Further, you can also have Medical Reimbursements, Mobile Allowances, or Reimbursement which are useful in getting tax exempt, as these amounts will be reimbursed by the company on the production of bills by the employee.
Regards,
Rachna
From India, Hyderabad
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Let me know what other allowances you want to calculate.
Further, you can also have Medical Reimbursements, Mobile Allowances, or Reimbursement which are useful in getting tax exempt, as these amounts will be reimbursed by the company on the production of bills by the employee.
Regards,
Rachna
From India, Hyderabad
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Dear Rachna,
I want to know if there is any freeze limit on the percentage including FBT benefit. For example, Basic 40% and HRA at 50% of Basic. Could you please provide the percentage ratios for the following allowances and their calculations:
- Helper Allowance
- Child Allowance
- Uniform Allowance
- LTA
- Special Allowance
This information will help me calculate the salary breakup for amounts exceeding 30k to provide FBT benefits to the employees.
Thanks,
Meenu
From India, Gurgaon
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I want to know if there is any freeze limit on the percentage including FBT benefit. For example, Basic 40% and HRA at 50% of Basic. Could you please provide the percentage ratios for the following allowances and their calculations:
- Helper Allowance
- Child Allowance
- Uniform Allowance
- LTA
- Special Allowance
This information will help me calculate the salary breakup for amounts exceeding 30k to provide FBT benefits to the employees.
Thanks,
Meenu
From India, Gurgaon
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Dear Meenu,
For every breakup, the maximum limit up to which tax is exempt per annum is mentioned. You only have to calculate the per month amount against each earnings heading. Furthermore, for Uniform allowance and Helper allowance, you need to check the definition of why your company is providing them. Additionally, you might allocate certain percentages to them or consider them as an equalizing factor (i.e., an amount to be allocated to equalize the CTC per month).
Special allowances are 100% taxable. You need to allocate the amounts in such a way that the employee has the maximum take-home criteria.
If you have any queries, feel free to contact me.
Regards,
Rachna
From India, Hyderabad
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For every breakup, the maximum limit up to which tax is exempt per annum is mentioned. You only have to calculate the per month amount against each earnings heading. Furthermore, for Uniform allowance and Helper allowance, you need to check the definition of why your company is providing them. Additionally, you might allocate certain percentages to them or consider them as an equalizing factor (i.e., an amount to be allocated to equalize the CTC per month).
Special allowances are 100% taxable. You need to allocate the amounts in such a way that the employee has the maximum take-home criteria.
If you have any queries, feel free to contact me.
Regards,
Rachna
From India, Hyderabad
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Hi,
You can calculate the salary breakup as:
Basic: 40% of the gross
HRA: 50% of Basic
Conveyance: 800/-
PF: 12% of Basic
Medical: 1250/- (tax-free component)
Sodexo: 2500/- (if you have this facility) (tax-free component)
Education Allowance: 200/- (tax-free component)
Communication: 2000/- (tax-free component)
Vehicle: 1200/- (tax-free component)
LTA: 25000/- (exempted twice in a block of 4 years)
Personal Allowance or Special Allowance or Other Allowance: Balance (this is a taxable component)
FBT will be calculated on components that are tax-free, such as Sodexo, education, communication, and vehicle.
The sum of all the tax-free components * 6.798/100 = FBT.
The salary structure for 50000 is as follows:
Basic: 20833
HRA: 10417
Conveyance Allowance: 800
PF: 2500
Sodexo: 2500
Medical: 1250
Education Allowance: 200
Communication: 2000
Vehicle: 1200
Personal Allowance: 8300
LTA: 25000
FBT: 469
Monthly: 50000
Annual: 625000
It depends on the employer whether he pays the FBT or includes it in the CTC, but in most companies, the FBT is paid by the employer.
Hope this helps you.
Thanks,
Uttama
From India, Mumbai
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You can calculate the salary breakup as:
Basic: 40% of the gross
HRA: 50% of Basic
Conveyance: 800/-
PF: 12% of Basic
Medical: 1250/- (tax-free component)
Sodexo: 2500/- (if you have this facility) (tax-free component)
Education Allowance: 200/- (tax-free component)
Communication: 2000/- (tax-free component)
Vehicle: 1200/- (tax-free component)
LTA: 25000/- (exempted twice in a block of 4 years)
Personal Allowance or Special Allowance or Other Allowance: Balance (this is a taxable component)
FBT will be calculated on components that are tax-free, such as Sodexo, education, communication, and vehicle.
The sum of all the tax-free components * 6.798/100 = FBT.
The salary structure for 50000 is as follows:
Basic: 20833
HRA: 10417
Conveyance Allowance: 800
PF: 2500
Sodexo: 2500
Medical: 1250
Education Allowance: 200
Communication: 2000
Vehicle: 1200
Personal Allowance: 8300
LTA: 25000
FBT: 469
Monthly: 50000
Annual: 625000
It depends on the employer whether he pays the FBT or includes it in the CTC, but in most companies, the FBT is paid by the employer.
Hope this helps you.
Thanks,
Uttama
From India, Mumbai
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Hi Uttama,
Most of the matter is clear now, but what is this Sodexo? Please explain. Communication means mobile allowance; just tell me.
In our company, FBT is included in CTC. FBT burden is on the employee, and it is part of CTC.
Best Regards,
Meenu
From India, Gurgaon
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Most of the matter is clear now, but what is this Sodexo? Please explain. Communication means mobile allowance; just tell me.
In our company, FBT is included in CTC. FBT burden is on the employee, and it is part of CTC.
Best Regards,
Meenu
From India, Gurgaon
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Meenu: Sodexho, Accor coupons are the meal and Gift coupons which is being provided for the employees to get rid off with the Tax (Amounted to Rs. 1250/-) Thanks - Mirza
From Saudi Arabia, Jiddah
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From Saudi Arabia, Jiddah
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Hi Meenu,
Mirza is right, they are meal vouchers/gift vouchers which are accepted in many of the shops and restaurants. If the company orders the coupons, they provide a directory of where these coupons are accepted. The amount can vary from 1250/... It depends on the company.
Yes, if the employer does not pay the FBT, it is added to the CTC. As I mentioned, in most organizations, the employer either pays or does not provide an option for these components. They usually have a simple salary structure consisting of Basic, HRA, Conveyance, etc. Medical and the rest are added in some other taxable components.
Communication is a mobile allowance paid upon producing the supporting bills.
I hope this is clear.
Thanks,
Uttama
From India, Mumbai
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Mirza is right, they are meal vouchers/gift vouchers which are accepted in many of the shops and restaurants. If the company orders the coupons, they provide a directory of where these coupons are accepted. The amount can vary from 1250/... It depends on the company.
Yes, if the employer does not pay the FBT, it is added to the CTC. As I mentioned, in most organizations, the employer either pays or does not provide an option for these components. They usually have a simple salary structure consisting of Basic, HRA, Conveyance, etc. Medical and the rest are added in some other taxable components.
Communication is a mobile allowance paid upon producing the supporting bills.
I hope this is clear.
Thanks,
Uttama
From India, Mumbai
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