Dear All I would like to the various components there in the salary that are tax free that the components that do not attract tax. Look forward to hearing from you all. Thank you Juliana
From India, Bangalore
From India, Bangalore
hi juliana
normally company formulate salary by adopting various components. the normal components will help in bifurgating the consolidated salary and then arrive at the cost to the company.
the normal salary breakup for salary purposes are : Basic+DA+HRA+Conveyance+Special Allowances etc., All these components do not attract tax, but all the components has certain limits. for ex: HRA has some limits were tax is evaded, and so on.
therefore first see the allowable limits for various components and then formulate the salary.
regards
devarajan
From India, Madras
10normally company formulate salary by adopting various components. the normal components will help in bifurgating the consolidated salary and then arrive at the cost to the company.
the normal salary breakup for salary purposes are : Basic+DA+HRA+Conveyance+Special Allowances etc., All these components do not attract tax, but all the components has certain limits. for ex: HRA has some limits were tax is evaded, and so on.
therefore first see the allowable limits for various components and then formulate the salary.
regards
devarajan
From India, Madras
There is a little scope that your all earning should get tax exemptions. But there are some techniques you can follow,
1) If basic wages + DA is higher lower that and some some heads other than that, it will add figures to gross salary. But actually, Pf attract 12% contribution by employer (+1.61 adm charges) which levies on basic wages + DA. On gross wages ESIC is applicable which is lower i.e. 4.75 means you saving taxes 7.25. Isn' it?
2) In ESIC washing allowance is not liable for deduction. (if your industry is needed washing allowance.)
Regards
prashant Patil
From India, Nagpur
1) If basic wages + DA is higher lower that and some some heads other than that, it will add figures to gross salary. But actually, Pf attract 12% contribution by employer (+1.61 adm charges) which levies on basic wages + DA. On gross wages ESIC is applicable which is lower i.e. 4.75 means you saving taxes 7.25. Isn' it?
2) In ESIC washing allowance is not liable for deduction. (if your industry is needed washing allowance.)
Regards
prashant Patil
From India, Nagpur
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx