Hi, I kindly request you to reply to my below query.
We are shop establishment company (Private Limited Company ) , I want to know the salary break up with percentage , we have the following as part of salary Basic , DA, HRA, CA,MA ,EA,Adhoc Allowances and I want to know the percentage break up for these categories.
Is there any relation between the basic and HRA? How it has to be structured for the employee’s tax benefits?
What is EA and is it tax free? Till what limit?
How much MA is tax free?
How much CA is tax free?
What are the slabs for PT?
Final in-hand salary will also depend upon the TDS
Regards
Anne Priya.A
From India, Bangalore
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1We are shop establishment company (Private Limited Company ) , I want to know the salary break up with percentage , we have the following as part of salary Basic , DA, HRA, CA,MA ,EA,Adhoc Allowances and I want to know the percentage break up for these categories.
Is there any relation between the basic and HRA? How it has to be structured for the employee’s tax benefits?
What is EA and is it tax free? Till what limit?
How much MA is tax free?
How much CA is tax free?
What are the slabs for PT?
Final in-hand salary will also depend upon the TDS
Regards
Anne Priya.A
From India, Bangalore
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Dear Annepriya,
As per TNSE Act we can follow the structure mentioning below
Basic : 60 - 70%(From CTC)
HRA : 30-40%(Depends on PLace like Rural, Urban, metro) from Basic
MA: Fixed and Max 1000Rs
you can fix other allowances but if its exceeding 1000 then it will be taxable income for the people who exceeding the tax sealing limit.
1. Basic Salary is the core part of salary, and many other components may be calculated based on this amount. It usually depends on one’s grade within the company’s salary structure. It is a fixed part of one’s compensation structure
2. HRA is House rent allowance and it is calculated from the basic salary and It is differ based on the locality of the company. 30 - 40% is considerable.
3. HRA is not consider under Taxable income and if the employee staying in rental home they should submit the PAN card of house owner and receipt for get exception for the tax.
4. Professional Tax is mandatory and it differs by state wise. you can pay the tax on 6month or 3month or everymonth.
5. MA is fixed component and Max 1000rs applicable. It can be taxable if more then 1000rs and it depends.
6. CA is also fixed component and similar like MA.
All those components are Taxable depends on Company.
If required you can add other things too as Allowence
From India, Chennai
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As per TNSE Act we can follow the structure mentioning below
Basic : 60 - 70%(From CTC)
HRA : 30-40%(Depends on PLace like Rural, Urban, metro) from Basic
MA: Fixed and Max 1000Rs
you can fix other allowances but if its exceeding 1000 then it will be taxable income for the people who exceeding the tax sealing limit.
1. Basic Salary is the core part of salary, and many other components may be calculated based on this amount. It usually depends on one’s grade within the company’s salary structure. It is a fixed part of one’s compensation structure
2. HRA is House rent allowance and it is calculated from the basic salary and It is differ based on the locality of the company. 30 - 40% is considerable.
3. HRA is not consider under Taxable income and if the employee staying in rental home they should submit the PAN card of house owner and receipt for get exception for the tax.
4. Professional Tax is mandatory and it differs by state wise. you can pay the tax on 6month or 3month or everymonth.
5. MA is fixed component and Max 1000rs applicable. It can be taxable if more then 1000rs and it depends.
6. CA is also fixed component and similar like MA.
All those components are Taxable depends on Company.
If required you can add other things too as Allowence
From India, Chennai
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Thank you, Sir, for this valuable information. As per the new PF guidelines (Karnataka, Mysore), the existing salary limit of Rs 6,500 has been increased to Rs 15,000, thereby expanding both the membership base and the quantum of contributions.
Since PF calculation will depend upon Basic + DA, what should be the percentage of Basic and DA under the shop establishment act? In your previous reply, you had mentioned it as 60% of CTC. If we have to include DA, what will be the calculation? Please let me know.
Regards, Anne Priya.A
From India, Bangalore
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Since PF calculation will depend upon Basic + DA, what should be the percentage of Basic and DA under the shop establishment act? In your previous reply, you had mentioned it as 60% of CTC. If we have to include DA, what will be the calculation? Please let me know.
Regards, Anne Priya.A
From India, Bangalore
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Anne Priya,
Basic pay is mandatory at any cost, and DA reflects the present market status. DA is calculated based on the Basic pay and varies depending on the market value and inflation rate each year. Typically, DA can be considered as 50-60% at most.
As you mentioned, Basic pay plus DA constitute the PF, and there is no need to include the DA component separately. Therefore, please do not get confused about this.
Thank you.
From India, Chennai
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Basic pay is mandatory at any cost, and DA reflects the present market status. DA is calculated based on the Basic pay and varies depending on the market value and inflation rate each year. Typically, DA can be considered as 50-60% at most.
As you mentioned, Basic pay plus DA constitute the PF, and there is no need to include the DA component separately. Therefore, please do not get confused about this.
Thank you.
From India, Chennai
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