Hello.
Need help regarding salary break up. The package is 6.5 lac per annum of which 2.6 lac is Basic pay and 3.9 is Choice Pay. What is choice pay? And how do we get to ask for choice pay with tax benefits.
In the previous company, the gross was 40,900 and the net pay tome was 29,415. Rs.6000 was deducted as tax.
Kindly advise how to design the choice pay.
Thanks
Uma.
From India, Vijayawada
Need help regarding salary break up. The package is 6.5 lac per annum of which 2.6 lac is Basic pay and 3.9 is Choice Pay. What is choice pay? And how do we get to ask for choice pay with tax benefits.
In the previous company, the gross was 40,900 and the net pay tome was 29,415. Rs.6000 was deducted as tax.
Kindly advise how to design the choice pay.
Thanks
Uma.
From India, Vijayawada
Hi Uma,
I assume Choice Pay is nothing but what we refer in our company as flexible pay which is a part of your total package.
In Flexible Pay, which we term as FBP (Flexible Benefit Plan):
1. We have identified certain components that can be used purely on reimbursement basis, which is if he needs that money he needs to produce bills/receipts.
2. The components in FBP that we offer to all our employees are: Food Coupon, Medical, LTA, Telephone, Vehicle Fuel+Drivers Salary, Computer Purchse, Car Lease etc..
3. All these components are assigned a fix limit and there are some components that are exclusive to the manager and above, for e.g. Computer purchse and Vehcile Fuel cannot be an option for a software developer.
4. Employees can either monthly or quarterly submits bills and claim for reimbursement.
5. On all these components there is an FBT levied and not direct tax. And indeed this is a good method where by employees can minimize tax especially employees with higher salary incomes.
I hope this piece of information will help.
Let me know if you need more assistance.
Cheers, Nikita
From India
4I assume Choice Pay is nothing but what we refer in our company as flexible pay which is a part of your total package.
In Flexible Pay, which we term as FBP (Flexible Benefit Plan):
1. We have identified certain components that can be used purely on reimbursement basis, which is if he needs that money he needs to produce bills/receipts.
2. The components in FBP that we offer to all our employees are: Food Coupon, Medical, LTA, Telephone, Vehicle Fuel+Drivers Salary, Computer Purchse, Car Lease etc..
3. All these components are assigned a fix limit and there are some components that are exclusive to the manager and above, for e.g. Computer purchse and Vehcile Fuel cannot be an option for a software developer.
4. Employees can either monthly or quarterly submits bills and claim for reimbursement.
5. On all these components there is an FBT levied and not direct tax. And indeed this is a good method where by employees can minimize tax especially employees with higher salary incomes.
I hope this piece of information will help.
Let me know if you need more assistance.
Cheers, Nikita
From India
hi Nikita Thanx a lot for your information.To add to this FBT is 6.6%. regards Amanpreet Bedi
From India, Mumbai
From India, Mumbai
Hi ,
Can some one help me on these..
1.) Do we have to make any declaration for FBP component in annual tax declaration ?
2.) For example if my FBP contains Phone Bill 24000 annual & Broadband 24000 annual, and my bills are not 2k per month then how do we claim the total value ... and if i can't then is that a loss of remaining balance ?
3.) What is case of prepaid mobile connection, i don't get any bills in such case ?
Regards,
Bharath.
From India, Bangalore
Can some one help me on these..
1.) Do we have to make any declaration for FBP component in annual tax declaration ?
2.) For example if my FBP contains Phone Bill 24000 annual & Broadband 24000 annual, and my bills are not 2k per month then how do we claim the total value ... and if i can't then is that a loss of remaining balance ?
3.) What is case of prepaid mobile connection, i don't get any bills in such case ?
Regards,
Bharath.
From India, Bangalore
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