Hi friends!!! Can any body throw some light on salary structure in India and how to do computation of taxable and non taxable income. Regards, Shweta
From India, Ahmadabad
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1From India, Ahmadabad
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Hi Sweta,
Typically, there are three components: Fixed salary, Variable salary, and benefits.
Fixed includes Basic, DA, HRA, PF, PT, SA (This includes earnings as well as deductions).
Variable includes Special allowance, Project allowances, Bonus, Performance pay, Incentive, etc.
The benefits part includes car plan, Holiday package, Leased accommodation, Telephone, Medical/Hospitalization schemes, etc.
All these components together form the CTC.
Regarding Taxable and Non-Taxable components, Sodexo and some medical allowances are considered non-taxable. Most other allowances are either covered under the Income Tax Act or the FBT act.
Therefore, it is advisable to check the FBT act before making any alterations to your current salary structure.
From India, Ahmadabad
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Typically, there are three components: Fixed salary, Variable salary, and benefits.
Fixed includes Basic, DA, HRA, PF, PT, SA (This includes earnings as well as deductions).
Variable includes Special allowance, Project allowances, Bonus, Performance pay, Incentive, etc.
The benefits part includes car plan, Holiday package, Leased accommodation, Telephone, Medical/Hospitalization schemes, etc.
All these components together form the CTC.
Regarding Taxable and Non-Taxable components, Sodexo and some medical allowances are considered non-taxable. Most other allowances are either covered under the Income Tax Act or the FBT act.
Therefore, it is advisable to check the FBT act before making any alterations to your current salary structure.
From India, Ahmadabad
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Hi Swetha,
We had a lot of discussion on this topic earlier here. Why don't you input the keywords in the quick search and read those posts? I am sure it would help you.
Anyways, here is a link to one of the posts. Hope it would help you out.
<link no longer exists - removed>
Regards, Soumya Shankar
From India, Bangalore
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We had a lot of discussion on this topic earlier here. Why don't you input the keywords in the quick search and read those posts? I am sure it would help you.
Anyways, here is a link to one of the posts. Hope it would help you out.
<link no longer exists - removed>
Regards, Soumya Shankar
From India, Bangalore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Taxable Income.doc