Hi All, Recently I joined in a placement consulting. I'm supposed to create the salary breakups like Basic, HRA, DA etc., I was very much comfortable with this because all the employees are recruiters and CTC is not > 15k.
Recently we have a new joinee (Male) with 35k. Can anybody please help me in salary bifurcation? n....... one more thing.. How to calculate IT (Income Tax)? What is the procedure for calculating IT? on which basis do we take it is it Basic+HRA+da (or) Basic+DA?
Please help me out....send the bifurcation procedure to my ID.
Thanks in advance!
Priyanka
From India, Hyderabad
Recently we have a new joinee (Male) with 35k. Can anybody please help me in salary bifurcation? n....... one more thing.. How to calculate IT (Income Tax)? What is the procedure for calculating IT? on which basis do we take it is it Basic+HRA+da (or) Basic+DA?
Please help me out....send the bifurcation procedure to my ID.
Thanks in advance!
Priyanka
From India, Hyderabad
Hi Priyanka,
The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Yes.. PF and ESI contribution from employer side is included in the CTC..
As per govt. Tax rules a ceiling has been fixed separately for both the genders..
For Male- Those who are earning more than 1.1 laks/annum have to return taxes.. and
For Female - this is 1.5 lacs/annum..
Hope it would help you to prepare the same at your end..
Regards,
Amit Seth.
From India, Ahmadabad
494The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 to 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Yes.. PF and ESI contribution from employer side is included in the CTC..
As per govt. Tax rules a ceiling has been fixed separately for both the genders..
For Male- Those who are earning more than 1.1 laks/annum have to return taxes.. and
For Female - this is 1.5 lacs/annum..
Hope it would help you to prepare the same at your end..
Regards,
Amit Seth.
From India, Ahmadabad
Amitji,
That was really useful for me... Thanx a lot. Depending upon the given criteria, I've created a salary breakup for one of my employee (Female).
Her CTC is 22k
Basic= 10000
HRA= 40 % of Basic= 4000
DA=20 % of Basic= 2000
Conveyance=800
Telephone Allowance= 1200
Medical Allowance= 1250
Petrol Allowance= 1950
Meal Allowance=800
= 22000.
Will this do? Do I need to modify anything in the above mentioned?
On which basis is IT is applicable? On Basic wage or on CTC? Please clarify this sir...........
Thanks in Advance!!!
From India, Hyderabad
That was really useful for me... Thanx a lot. Depending upon the given criteria, I've created a salary breakup for one of my employee (Female).
Her CTC is 22k
Basic= 10000
HRA= 40 % of Basic= 4000
DA=20 % of Basic= 2000
Conveyance=800
Telephone Allowance= 1200
Medical Allowance= 1250
Petrol Allowance= 1950
Meal Allowance=800
= 22000.
Will this do? Do I need to modify anything in the above mentioned?
On which basis is IT is applicable? On Basic wage or on CTC? Please clarify this sir...........
Thanks in Advance!!!
From India, Hyderabad
Hi Swetha,
really you have done a good job..
IT is been calculated on CTC, and for female above 1.5 lacs per annum is taxable income..
Out of this salary structure, some components have some rebate from taxes and some has complete exemption..
Like HRA, CCA and medical allowance is completely exempted upto the limit you prescribed..
Some exemption is there on Mobile and Petrol as well..
You may go ahead with the same structure.. But this is her gross salary not CTC.. to prepare CTC add other components as well which are being provided from company end.. like PF contribution as well as Insurance benefits...
Regards,
Amit Seth.
From India, Ahmadabad
really you have done a good job..
IT is been calculated on CTC, and for female above 1.5 lacs per annum is taxable income..
Out of this salary structure, some components have some rebate from taxes and some has complete exemption..
Like HRA, CCA and medical allowance is completely exempted upto the limit you prescribed..
Some exemption is there on Mobile and Petrol as well..
You may go ahead with the same structure.. But this is her gross salary not CTC.. to prepare CTC add other components as well which are being provided from company end.. like PF contribution as well as Insurance benefits...
Regards,
Amit Seth.
From India, Ahmadabad
Amitji,
Thanx a lot!!! :D .
Sir, Please go through the below salary Bifurcation!!
Basic Wage= 15000
HRA= 40 % of Basic= 6000
DA= 20 % of Basic= 3000
Conveyance= 800
Telephone Allowance= 3000
Medical Allowance= 3000
Meal Allowance= 2000
Petrol Allowance= 2200
Total= 35000.
Do I need to calculate IT? or can I handover it to Finance Dept??? Sorry to trouble you sir......But I'm in deadly need of this...
Thanks in Advance!!!
Priyanka
From India, Hyderabad
Thanx a lot!!! :D .
Sir, Please go through the below salary Bifurcation!!
Basic Wage= 15000
HRA= 40 % of Basic= 6000
DA= 20 % of Basic= 3000
Conveyance= 800
Telephone Allowance= 3000
Medical Allowance= 3000
Meal Allowance= 2000
Petrol Allowance= 2200
Total= 35000.
Do I need to calculate IT? or can I handover it to Finance Dept??? Sorry to trouble you sir......But I'm in deadly need of this...
Thanks in Advance!!!
Priyanka
From India, Hyderabad
Dear Priyanka,
Well prepared but it would be better if you keep the basic low.. as it will lead to more in-hand salary as well as will help in tax saving options for employee as well..
Medical allowance should be kept at 1250/- as only this much amount is exempted from taxes..
May add more tax saving components like educational allowance, books and periodicals... and so on..
Regards,
Amit Seth.
From India, Ahmadabad
Well prepared but it would be better if you keep the basic low.. as it will lead to more in-hand salary as well as will help in tax saving options for employee as well..
Medical allowance should be kept at 1250/- as only this much amount is exempted from taxes..
May add more tax saving components like educational allowance, books and periodicals... and so on..
Regards,
Amit Seth.
From India, Ahmadabad
Hi,
I am getting fixed salary without any benefit but I want to switch job, that time comp. wants salary breakup how I break up my gross salary without pf plan. I lost many opportunity for only this reason. My current employer deduct TDS and eduction tax. Please advise me
From India, Delhi
I am getting fixed salary without any benefit but I want to switch job, that time comp. wants salary breakup how I break up my gross salary without pf plan. I lost many opportunity for only this reason. My current employer deduct TDS and eduction tax. Please advise me
From India, Delhi
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