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
From India, Coimbatore
Dear Hari,
Compensation is a mix of various categories of pay; includes 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. Talking specifically of Medical Reimbursement & Conveyance Allowance; all tax exemptions have been removed from both of 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
152Compensation is a mix of various categories of pay; includes 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. Talking specifically of Medical Reimbursement & Conveyance Allowance; all tax exemptions have been removed from both of 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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