Dear All, Kindly guide me on salary break ups.... Does Medical allowance and conveyance have any limits... Can we adjust salary through these allowances??
From India, Coimbatore
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From India, Coimbatore
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Dear Hari,
Compensation is a mix of various categories of pay, including fixed pay (Basic), Allowances (HRA, LTA, Child Education, etc.), Reimbursements (Fuel & Vehicle, Driver Salary, etc.), Retirals (PF, NPS, PPF), variable pay (PLI), etc. Some of the Allowances and Reimbursements attract tax exemptions as per the Income Tax Act 1961. Specifically, Medical Reimbursement and Conveyance Allowance have had all tax exemptions removed from them wef 1st of April 2018.
A good compensation strategy has an equitable mix of all the components mentioned above. Hope this answers your question.
Regards,
Rahul Chhabra
From India, Delhi
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162Compensation is a mix of various categories of pay, including fixed pay (Basic), Allowances (HRA, LTA, Child Education, etc.), Reimbursements (Fuel & Vehicle, Driver Salary, etc.), Retirals (PF, NPS, PPF), variable pay (PLI), etc. Some of the Allowances and Reimbursements attract tax exemptions as per the Income Tax Act 1961. Specifically, Medical Reimbursement and Conveyance Allowance have had all tax exemptions removed from them wef 1st of April 2018.
A good compensation strategy has an equitable mix of all the components mentioned above. Hope this answers your question.
Regards,
Rahul Chhabra
From India, Delhi
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