Hi All, Can anyone please share non taxable components as per 2013, because I have heard that few are removed? Thanks in advance! John
From India, Nagpur
From India, Nagpur
Hi
The follwing are non taxabale component in specific and in general.
-House Rent Allowance (HRA)
-Conveyance Allowance
-Foreign Allowance (for govt emplyee's serve in other countries)
-Children Education Allowance
-Reimbursements - medical, Meal Vouchers, Gift, LTA, Telephone, Travel
-Corporate Mediclaim policy
In general:
- Source of agriculture
-Income for being partner in a firm
-Retirement/death - gratuity & Leave salary:
-Retrenchment
-Voluntary retirement:
-Life insurance policy returns
-Provident Fund:
-Superannuation
-Income from government securities
-Scholarships for education
-Awards and rewards - given by state or central governments
184The follwing are non taxabale component in specific and in general.
-House Rent Allowance (HRA)
-Conveyance Allowance
-Foreign Allowance (for govt emplyee's serve in other countries)
-Children Education Allowance
-Reimbursements - medical, Meal Vouchers, Gift, LTA, Telephone, Travel
-Corporate Mediclaim policy
In general:
- Source of agriculture
-Income for being partner in a firm
-Retirement/death - gratuity & Leave salary:
-Retrenchment
-Voluntary retirement:
-Life insurance policy returns
-Provident Fund:
-Superannuation
-Income from government securities
-Scholarships for education
-Awards and rewards - given by state or central governments
Hi,
All Earnings / components are taxable in the hands of employees. But a person can claim exemption under various section of income tax act, provided he is eligible. For example House Rent Allowance( HRA ). If an employee is staying in own house then his HRA is taxable. If employees are not proving Reimbursement Bills then it is taxable, Unmarried or Employee not having school going children then he can not claim CEA (children eduction allowance), Maximum Conveyane allowance could be 800per month,so like wise certain conditions are there.
With relate to CTC 12 lakhs. Usually company software company will break Total CTC in 3 ways. a. Fixed CTC b. Variable CTC c.Retrials So a+b+c = Total CTC.
Fixed CTC will be the Gross salary of the employee; Variable CTC (optional) will be one time payment usually it will start from 5% - 20% of fixed CTC ; Retrials will be Company contribution of PF, Gratuity etc.,
BASIC 47200
HRA 23600
CONVEYANCE 800
MEDICAL 1250
LTA 2000
SPECIAL ALLOWANCE 19550
MONTHLY GROSS 94400
ANNUAL GROSS 1132800
ANNUAL PF (Retrial) 67968
TOT CTC 1200770
From India, Chennai
All Earnings / components are taxable in the hands of employees. But a person can claim exemption under various section of income tax act, provided he is eligible. For example House Rent Allowance( HRA ). If an employee is staying in own house then his HRA is taxable. If employees are not proving Reimbursement Bills then it is taxable, Unmarried or Employee not having school going children then he can not claim CEA (children eduction allowance), Maximum Conveyane allowance could be 800per month,so like wise certain conditions are there.
With relate to CTC 12 lakhs. Usually company software company will break Total CTC in 3 ways. a. Fixed CTC b. Variable CTC c.Retrials So a+b+c = Total CTC.
Fixed CTC will be the Gross salary of the employee; Variable CTC (optional) will be one time payment usually it will start from 5% - 20% of fixed CTC ; Retrials will be Company contribution of PF, Gratuity etc.,
BASIC 47200
HRA 23600
CONVEYANCE 800
MEDICAL 1250
LTA 2000
SPECIAL ALLOWANCE 19550
MONTHLY GROSS 94400
ANNUAL GROSS 1132800
ANNUAL PF (Retrial) 67968
TOT CTC 1200770
From India, Chennai
Dear John,
There are some salary components that can be used to save tax for employees. Salary structure differs from organisation to organisation. Below are some components that are commonly used in industries.
1) HRA - Maximum 50% of Basic can be exempted from tax on submission of rent reciept
2) Conv. Allowance - 800/- per month is exempted from tax
3) Telephone Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. Fully exempted from tax on submission of bills. Note all employee should declare that calls were purely made for official purposes only.
4) Training Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. As per govt guideline the course or training shall be useful in company profit and growth. Training Reimbursement should not be exempted on periodic journals and the training courses that is a benefit to employee only. Fully exempted from tax on submission of bills only in case the training course is useful for company profit and growth.
5) Sodexo Meal Coupons - Part of Flexible Basket. A maximum of 50/- Rs. per meal is exempted from tax.
6) Car Fuel - Part of Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer) and purpose of travel. Car Fuel attracts perquisites, so should be carefully implemented. An employee can only take either Conv Allowance or Car Fuel. Both can not be availed at same time.
7) Driver Salary - Part of Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer) and purpose of travel. Driver Salary attracts perquisites, so should be carefully implemented. Employees availing Conv Allowance should not be allowed to take the benefit of Driver Salary exemption.
8) Sodexo Gift Vouchers - Part of Flexible Basket. A maximum of 5000/- per year is exempted from tax.
9) Medical Reimbursement - Part of Flexible Basket. A maximum of 1250/- per month is exempted from tax on submission of bills.
10) LTA Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. Fully exempted from tax on submission of bills (Only twice in a four year block).
AK Jain
From India, Jabalpur
There are some salary components that can be used to save tax for employees. Salary structure differs from organisation to organisation. Below are some components that are commonly used in industries.
1) HRA - Maximum 50% of Basic can be exempted from tax on submission of rent reciept
2) Conv. Allowance - 800/- per month is exempted from tax
3) Telephone Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. Fully exempted from tax on submission of bills. Note all employee should declare that calls were purely made for official purposes only.
4) Training Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. As per govt guideline the course or training shall be useful in company profit and growth. Training Reimbursement should not be exempted on periodic journals and the training courses that is a benefit to employee only. Fully exempted from tax on submission of bills only in case the training course is useful for company profit and growth.
5) Sodexo Meal Coupons - Part of Flexible Basket. A maximum of 50/- Rs. per meal is exempted from tax.
6) Car Fuel - Part of Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer) and purpose of travel. Car Fuel attracts perquisites, so should be carefully implemented. An employee can only take either Conv Allowance or Car Fuel. Both can not be availed at same time.
7) Driver Salary - Part of Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer) and purpose of travel. Driver Salary attracts perquisites, so should be carefully implemented. Employees availing Conv Allowance should not be allowed to take the benefit of Driver Salary exemption.
8) Sodexo Gift Vouchers - Part of Flexible Basket. A maximum of 5000/- per year is exempted from tax.
9) Medical Reimbursement - Part of Flexible Basket. A maximum of 1250/- per month is exempted from tax on submission of bills.
10) LTA Reimbursement - Part of Flexible Basket. There is no upper limit prescribed by Govt, however there should be one firm policy and the limits per month should be derived as per employee's grade and designation. Fully exempted from tax on submission of bills (Only twice in a four year block).
AK Jain
From India, Jabalpur
Dear Ramesh G and Mr. Arun, Thank you for your guidance! One more Mr Ramesh, can you please also help me in figuring out annual tax I need to deduct from my employee?
From India, Nagpur
From India, Nagpur
hi,
as i already mentioned tax calculation will change according to employees investment/Rent house etc., For Financial year 2013-14 annual income tax rate are;
up to 2 lakhs - NIL.
2 lakhs to 5lakhs= 10%
5lakhs to 10 lakhs=20%
above 10lakhs=30%
Education cess 3% on the tax rate.
If you still need held you can mail me @
Regards,
Ramesh G
From India, Chennai
as i already mentioned tax calculation will change according to employees investment/Rent house etc., For Financial year 2013-14 annual income tax rate are;
up to 2 lakhs - NIL.
2 lakhs to 5lakhs= 10%
5lakhs to 10 lakhs=20%
above 10lakhs=30%
Education cess 3% on the tax rate.
If you still need held you can mail me @
Regards,
Ramesh G
From India, Chennai
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Taxable Income.doc