Hi Folks
Could any of clarify my doubt on the following
What Should be the basic % in a CTC
HRA should be At what % of Basic
Da should be at At what % of Basic
HRA should be At what % of Basic
CCA should at what % of Basic
Gratuituy %
Super annuation %
Is leave encahsment is taxable, if so at What %
and what is the process of TAX deduction and what is its limit in every account
Kindly clarfiy my doubts
With Regards
R.Sudhakar
From India
7Could any of clarify my doubt on the following
What Should be the basic % in a CTC
HRA should be At what % of Basic
Da should be at At what % of Basic
HRA should be At what % of Basic
CCA should at what % of Basic
Gratuituy %
Super annuation %
Is leave encahsment is taxable, if so at What %
and what is the process of TAX deduction and what is its limit in every account
Kindly clarfiy my doubts
With Regards
R.Sudhakar
From India
Hi Sudhakar,
The compensation structure may vary from Co. to Co. and industry to industry due to type of skill requirements, demand-supply scenarios and industry specific norms (sometime set by quasi-legal boards).
But, very generally, you could follow this :
Basic : 30 - 35% of CTC
HRA : 50% of Basic
DA : Regulated by Govt. notifications (nominal amounts)
CCA : Is normally a filler on negotiated salary (put the balance amount in
this). Otherwise, 30% of CTC
Gratuity : Is statutory (consider 4.81%)
Superannuation : 15% - 27% of basic (27% if there is no PF)
Leave Encashment : Taxable under provision of IT Act.
Tax deduction is based on various things like HRA claim (least of the 3 conditions under the IT Act - could also be non-taxable if claimed properly), investments done by employee, attraction of 80C/cca, (basic, cca fully taxed based on IT slabs), etc. Please refer to the IT Act (direct taxes) or your Finance deptt for more details..)
The above comp. structure can be tweaked or more components added based on the Co's requirements. That needs a discussion.....
Hope the information helps.
Rahul
09968270580
Hi Folks
Could any of clarify my doubt on the following
What Should be the basic % in a CTC
HRA should be At what % of Basic
Da should be at At what % of Basic
HRA should be At what % of Basic
CCA should at what % of Basic
Gratuituy %
Super annuation %
Is leave encahsment is taxable, if so at What %
and what is the process of TAX deduction and what is its limit in every account
Kindly clarfiy my doubts
With Regards
R.Sudhakar
From India, New Delhi
The compensation structure may vary from Co. to Co. and industry to industry due to type of skill requirements, demand-supply scenarios and industry specific norms (sometime set by quasi-legal boards).
But, very generally, you could follow this :
Basic : 30 - 35% of CTC
HRA : 50% of Basic
DA : Regulated by Govt. notifications (nominal amounts)
CCA : Is normally a filler on negotiated salary (put the balance amount in
this). Otherwise, 30% of CTC
Gratuity : Is statutory (consider 4.81%)
Superannuation : 15% - 27% of basic (27% if there is no PF)
Leave Encashment : Taxable under provision of IT Act.
Tax deduction is based on various things like HRA claim (least of the 3 conditions under the IT Act - could also be non-taxable if claimed properly), investments done by employee, attraction of 80C/cca, (basic, cca fully taxed based on IT slabs), etc. Please refer to the IT Act (direct taxes) or your Finance deptt for more details..)
The above comp. structure can be tweaked or more components added based on the Co's requirements. That needs a discussion.....
Hope the information helps.
Rahul
09968270580
Hi Folks
Could any of clarify my doubt on the following
What Should be the basic % in a CTC
HRA should be At what % of Basic
Da should be at At what % of Basic
HRA should be At what % of Basic
CCA should at what % of Basic
Gratuituy %
Super annuation %
Is leave encahsment is taxable, if so at What %
and what is the process of TAX deduction and what is its limit in every account
Kindly clarfiy my doubts
With Regards
R.Sudhakar
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Breakup alongwith TDS working and Computation A.Y. 13-14.xls