Dear sirs,
With pleasure I introduce myself, new member of CITEHR.
We are having salary range of 30,000 - 3,000 for our emplyees
We want to structure by considering...
1) PF
2) IT
3) FBT
One of my friend told that 1) Reduce Basic+DA as maxmum as (i.e. 25%-45% of total salary so that CTC on PF will be less) 2) HRA - max 40% total salary 3) balance we can show split into CCA, Special Allowance
Kindly advise the abv calculation is in order? also advise maximum allowable limit of CCA & Special allowance per year per employee....is there any FBT applicable against CCA & Spl allowance?
Kindly advise.
With Regards,
Ramesh kg
From India, Coimbatore
With pleasure I introduce myself, new member of CITEHR.
We are having salary range of 30,000 - 3,000 for our emplyees
We want to structure by considering...
1) PF
2) IT
3) FBT
One of my friend told that 1) Reduce Basic+DA as maxmum as (i.e. 25%-45% of total salary so that CTC on PF will be less) 2) HRA - max 40% total salary 3) balance we can show split into CCA, Special Allowance
Kindly advise the abv calculation is in order? also advise maximum allowable limit of CCA & Special allowance per year per employee....is there any FBT applicable against CCA & Spl allowance?
Kindly advise.
With Regards,
Ramesh kg
From India, Coimbatore
your answers are useful to me.But i wanna some table about that allowances. some body told HRA is maximum 4000 non-taxable. and cca is 800 maximum.are they correct.give me the list of values.like DA, Basic also. thanking you in advance.
From India, Hyderabad
From India, Hyderabad
Hi Ramesh
While dividing the Gross salary u should keep in mind minimum wage acts of the each state. If you dont know you can get the information of the same by google search.
As per my acknowledge you can keep the basic salary as 50% of the gross salary for the safer side (irrespective of the state).
Whya i told this because most of the Employee welfare offices in india they will c first the Basic+DA or Basic. All the Benifits wiil be calculated taking the Basic as the Base Amount example; PF, ESI, Gratuity, Leave Encashment, Bonus etc.,
So you can keep at least 50% of Gross as basic. If in your state as per the Labour Laws & Minium wage act is lesser than this you can take the same.
The HRA maximum 40% of basic (allowed as per income tax) if you want u can keep less ot more than this no problem. But for the IT calculation on 40% of Basic is allowed as HRA Exemption. Adviced to keep 40% only so that for calculation for IT is easy.
balance of the amount you can keep as Transportaion, Spl allowance,
Example
Gross Salary Rs. 10,000.00
Baisc Salary Rs. 5,000.00 (50% of Basic Salary)
HRA Rs. 2,000.00 (40% of Basic Salary)
Transportation Rs. 800.00 (Standard as per Income Tax Act)
Spl Allowance Rs. 2,200.00
I think it may help you
Thanks & regards
Ravi
From India, Bangalore
While dividing the Gross salary u should keep in mind minimum wage acts of the each state. If you dont know you can get the information of the same by google search.
As per my acknowledge you can keep the basic salary as 50% of the gross salary for the safer side (irrespective of the state).
Whya i told this because most of the Employee welfare offices in india they will c first the Basic+DA or Basic. All the Benifits wiil be calculated taking the Basic as the Base Amount example; PF, ESI, Gratuity, Leave Encashment, Bonus etc.,
So you can keep at least 50% of Gross as basic. If in your state as per the Labour Laws & Minium wage act is lesser than this you can take the same.
The HRA maximum 40% of basic (allowed as per income tax) if you want u can keep less ot more than this no problem. But for the IT calculation on 40% of Basic is allowed as HRA Exemption. Adviced to keep 40% only so that for calculation for IT is easy.
balance of the amount you can keep as Transportaion, Spl allowance,
Example
Gross Salary Rs. 10,000.00
Baisc Salary Rs. 5,000.00 (50% of Basic Salary)
HRA Rs. 2,000.00 (40% of Basic Salary)
Transportation Rs. 800.00 (Standard as per Income Tax Act)
Spl Allowance Rs. 2,200.00
I think it may help you
Thanks & regards
Ravi
From India, Bangalore
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