Hi friends!!! Can any body throw some light on salary structure in India and how to do computation of taxable and non taxable income. Regards, Shweta
From India, Ahmadabad
1From India, Ahmadabad
Hi Sweta..
Typically there are three components like Fixed salary, Variable salary & benefits.
Fixed includes Basic, DA, HRA, PF, PT, SA ( This includes earnings as well deductions)
Variable includes Special allowance, Project allowances, Bonus, Performance pay, Incentive, etc
Benefits part includes car plan, Holiday package, Leased accommodation, Telephone, Medical / Hospitalization schemes etc.
These put together forms CTC.....
As for the Taxable and Non Taxable....
Sodexho and some medical allowances are considered to be non taxable... Most of other allowances are either brought under the Income Tax Act or FBT act...
So, it is advisable that you check the FBT act before making any alteration to your current salary structure.
From India, Ahmadabad
Typically there are three components like Fixed salary, Variable salary & benefits.
Fixed includes Basic, DA, HRA, PF, PT, SA ( This includes earnings as well deductions)
Variable includes Special allowance, Project allowances, Bonus, Performance pay, Incentive, etc
Benefits part includes car plan, Holiday package, Leased accommodation, Telephone, Medical / Hospitalization schemes etc.
These put together forms CTC.....
As for the Taxable and Non Taxable....
Sodexho and some medical allowances are considered to be non taxable... Most of other allowances are either brought under the Income Tax Act or FBT act...
So, it is advisable that you check the FBT act before making any alteration to your current salary structure.
From India, Ahmadabad
Hi Swetha,
We had a lot of discussion on this topic earlier here. Why don't you give in the key words in the quick search and read those posts. Iam sure it would help you.
Anyways, here is a link to one of the posts. Hope it would help you out.
<link no longer exists - removed>
Regards,
Soumya Shankar
From India, Bangalore
We had a lot of discussion on this topic earlier here. Why don't you give in the key words in the quick search and read those posts. Iam sure it would help you.
Anyways, here is a link to one of the posts. Hope it would help you out.
<link no longer exists - removed>
Regards,
Soumya Shankar
From India, Bangalore
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SALARY SHEET CALCULATION.xls
Salary calculation.doc