Salary Breakup [Thread 360002]

Can any one help me with the salary breakup (the Taxable and Non taxable component)

Gross salary is divided in several parts which are as follows:
1.BASIC SALARY (basic salary should be 50% of gross salary and it can be maximum of 50% as per companies policies)
2. D.A. (it is basically fixed by the central govt. but can give it more then fix amount)
3.H.R.A.(it is given on Basic + DA ) 40% of this is tax exempt.
4.P.F. ( in which employee contribution is 12% of Basic+DA)
5.E.S.I. ( in which employee contribution is 1.75 of Basic)
6.Allowences (Medical,CCA,T.A.,Etc.)

Hi Sir,
I want to know the first month salary for Multi Tasking (Non-Technical)
Pay Band (PB-1): Rs. 5200 - 20200 Grade Pay : Rs. 1,800.00
Group-C post .....

Salary breakup must be employee friendly (Tax Saving Purpose) , Please find below the salary heads-

1. Basic - Income

Tax Benefit: Fully Taxable

2. House Rent Allowance (HRA) - Maximum 50% basic (Metro cities) 40% basic (non metro cities).

Tax Benefit:Excess of Actual rent paid over 10% of Basic salary OR Maximum HRA allowed (50% or 60% of basic) OR Actual Rent Paid – whichever is lower is Exempt from Tax.

3. Transport Allowance - Supposed to be conveyance allowance meant for transportation between office and residence only.

Tax Benefit:Exempt maximum up to Rs.800/- per month. No proof required.

4.Children’s education allowance - Tax Benefit: Rs.100 per child subject to max 2 children. Hence maximum Rs.200/- is exempt.

5. Medical Allowances / Reimbursements - Can be given against bills or without bills does not matter. Some companies give it monthly, some quarterly, half yearly or yearly also. Some companies give it only against medical bills, some do not ask for bills, rather bills are only demanded for Final Tax Computation at the end of the year. No thumb rule about it. Preferred to pay monthly, without bills and ask bills as per your wish, quarterly, half yearly or at the end of the year. Do not choose to give it against bills only, there is no rule for the same…It only makes salary processing a cumbersome process.

Tax Benefit: Maximum Rs.1250/- p.m. (Rs.15000 p.a.) is exempt only if Original Bills are provided.

6. Telephone Reimbursement: Exempted upto Rs.1500 per month( Need to produce bills)- Sec 10

7. Books & Periodical Reimbursement: Actual Expenses ( Need to Produce Bills)

8. VM Reimbursement: Actual Expenses ( Need to produce bills)

9. Special Allowances - Balancer (Fully Taxable)

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Thanks & Regards

Akhil Kumar

HR Consultant