Hi ,
I need to prepare the CTC for an employee, who has take home of Rs. 72,000. Moreover their is no ESI and PF. Also the Bonus is around 21,000 per annum. Moreover their is incentive but is paid in cash on quarterly basis. Not sure if to show that.
Please guide me how to prepare CTC for same ? . Boss asked it to be above Rs. 10 lakh.
Many Thanks
From India, New Delhi
1I need to prepare the CTC for an employee, who has take home of Rs. 72,000. Moreover their is no ESI and PF. Also the Bonus is around 21,000 per annum. Moreover their is incentive but is paid in cash on quarterly basis. Not sure if to show that.
Please guide me how to prepare CTC for same ? . Boss asked it to be above Rs. 10 lakh.
Many Thanks
From India, New Delhi
Pls look at the foll calc
Particulars Per Month Annual
Basic 36000 432000
Da 7200 86400
HRA 21600 259200
Conveyance 800 9600
Medical 1250 15000
Phone Allowance 3000 36000
Food Allowance 1250 15000
Newspaper Allowance 90 1080
Other Allowances 810 9720
------------------------------------------------------------------------------------------------
Take Home 72000 864000
Prof Tax 2500 (deducted from salary)
Gratuity 24923 (this amt is grat/yr payable after 5yrs)
Bonus (paid annually) 21000
LTA (paid once in 2 years) 100000
---------------------------------------------------------------------------------------------------
CTC 10,12,423 (as per your requirement)
Pls Note since your city was mentioned New Delhi, I have calculated this as per metro related.
Also note that if Professional Tax for your city is different, it would be different here, change figure accordingly I have put up PT as per Mumbai rule
LTA is reimbursed to the actual fare price based on shortest rail route (class would depend on the designation)
Gratuity is paid to a candidate when s/he leaves organization after 5 years, so every year, his/her due amount is set aside from his/her site. If s/he leaves organization before
5years, the amount goes to Company's kitty and can be used for its developmental purpose.
Food allowance is exempted from tax if it is calculated upto 50/- per day so I've calculated taking that into consideration so that there's no tax liability also
Medical Allowance if given on fixed basis, attracts tax. However if you are providing a reimbursement of medical bills/doctor's fees, it is exempted to actual amount or
1250/month whichever lower. So have calculated as per the rule
Other allowances are taxable and would have tax applicability which need not be reflected in CTC calc.
Phone allowance too is taxable unless company is reimbursing against the bills.
I hope it was of some help to you... :)
From India, Mumbai
Particulars Per Month Annual
Basic 36000 432000
Da 7200 86400
HRA 21600 259200
Conveyance 800 9600
Medical 1250 15000
Phone Allowance 3000 36000
Food Allowance 1250 15000
Newspaper Allowance 90 1080
Other Allowances 810 9720
------------------------------------------------------------------------------------------------
Take Home 72000 864000
Prof Tax 2500 (deducted from salary)
Gratuity 24923 (this amt is grat/yr payable after 5yrs)
Bonus (paid annually) 21000
LTA (paid once in 2 years) 100000
---------------------------------------------------------------------------------------------------
CTC 10,12,423 (as per your requirement)
Pls Note since your city was mentioned New Delhi, I have calculated this as per metro related.
Also note that if Professional Tax for your city is different, it would be different here, change figure accordingly I have put up PT as per Mumbai rule
LTA is reimbursed to the actual fare price based on shortest rail route (class would depend on the designation)
Gratuity is paid to a candidate when s/he leaves organization after 5 years, so every year, his/her due amount is set aside from his/her site. If s/he leaves organization before
5years, the amount goes to Company's kitty and can be used for its developmental purpose.
Food allowance is exempted from tax if it is calculated upto 50/- per day so I've calculated taking that into consideration so that there's no tax liability also
Medical Allowance if given on fixed basis, attracts tax. However if you are providing a reimbursement of medical bills/doctor's fees, it is exempted to actual amount or
1250/month whichever lower. So have calculated as per the rule
Other allowances are taxable and would have tax applicability which need not be reflected in CTC calc.
Phone allowance too is taxable unless company is reimbursing against the bills.
I hope it was of some help to you... :)
From India, Mumbai
Sorry for inconvenience. It meant to look different and it looks different. Find attached file to see it better
From India, Mumbai
From India, Mumbai
Hi Ankita,
First of all many thanks for the info... well i tweaked it a bit and it worked pretty well, now he ahs asked me to make it around 10lakhs 30 thousand... need some help on same too.. let me know if their is and excel i can work upon,...
thanks again
From India, New Delhi
First of all many thanks for the info... well i tweaked it a bit and it worked pretty well, now he ahs asked me to make it around 10lakhs 30 thousand... need some help on same too.. let me know if their is and excel i can work upon,...
thanks again
From India, New Delhi
Hi,
I was trying to upload Excel sheet but it didn't work so had to put up data in word.
I understood it dont support .xlsx and so converted the file and am attaching.
You can have the added amount as Other allowance wherein you need not specify why are you giving so and so money. And it wouldn't hamper as anyways it would be taxed so not much of headache.
That was how we worked, we placed all the bala
From India, Mumbai
I was trying to upload Excel sheet but it didn't work so had to put up data in word.
I understood it dont support .xlsx and so converted the file and am attaching.
You can have the added amount as Other allowance wherein you need not specify why are you giving so and so money. And it wouldn't hamper as anyways it would be taxed so not much of headache.
That was how we worked, we placed all the bala
From India, Mumbai
sorry in the above post, if you would add the remaining amount to Other Allownace, your In hand pm increases, which I guess you dont want. Chk the excel I've corrected it by
Including rentals for office premises/opportunity cost/electricity usage. Sounds strange but it is true and was shared by someone who had such factors mentioned in the CTC.
:)
Hope it helped.
From India, Mumbai
Including rentals for office premises/opportunity cost/electricity usage. Sounds strange but it is true and was shared by someone who had such factors mentioned in the CTC.
:)
Hope it helped.
From India, Mumbai
Hello Ankita,
I have seen your attached word file. You have mentioned Prof. Tax in CTC part, as per my knowledge CTC is Cost to Company in which we cant mention Prof Tax,P.F.(deduct from employee) amount. But yes we can mention Bonus, Gratuity, P.F(contribution from employer side). And when we make monthly salary break-up we include the deduction part from employee side(like P.F, Prof Tax, ESIC etc.)
Kindly let me know if I'm wrong.
Thank you
With regards
Mimu
From India, Mumbai
I have seen your attached word file. You have mentioned Prof. Tax in CTC part, as per my knowledge CTC is Cost to Company in which we cant mention Prof Tax,P.F.(deduct from employee) amount. But yes we can mention Bonus, Gratuity, P.F(contribution from employer side). And when we make monthly salary break-up we include the deduction part from employee side(like P.F, Prof Tax, ESIC etc.)
Kindly let me know if I'm wrong.
Thank you
With regards
Mimu
From India, Mumbai
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