Salary Break-Up
Hi Friends,
I have recently joined a Gurgaon-based company as an executive in its HR Dept. I have been given an assignment of presenting a salary break-up of Rs 22 Lac per annum (CTC). I would highly appreciate if someone helps me in suggesting the ideal break-up such that the employee has the lowest tax liability.
Thanks,
Ashwani
From India
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3Hi Friends,
I have recently joined a Gurgaon-based company as an executive in its HR Dept. I have been given an assignment of presenting a salary break-up of Rs 22 Lac per annum (CTC). I would highly appreciate if someone helps me in suggesting the ideal break-up such that the employee has the lowest tax liability.
Thanks,
Ashwani
From India
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Thanks Mr Aditya for your inputs. Can you please make an ideal salary break-up for me for a CTC of 22 Lac per annum.? I would highly appreciate if you could do this favour to me.. Regards Ashwani
From India
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From India
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Dear Ashwini, You can show the Helper Allowance also. This is tax free subject to supporting documents. Ramakant
From India, Pune
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From India, Pune
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Dear Murgan, My question will raise on your answer, as you told that Ex-Gratia amount to be add in salary break up but that is fully taxable amount then what is the need to pay Ex-Gratia.
From India, Mumbai
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From India, Mumbai
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Dear Ramakant, Helper allowances is taxable, if helper is used for official purpose then its exempted.
From India, Mumbai
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From India, Mumbai
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Hello Ashawany,
If you have already joined the company, then the salary breakup must have been given in your offer of appointment letter. The company might have offered you some options to change the components within the CTC. Please provide the salary breakup offered to you so that further advice may be given to you to save the income tax leviable upon you.
Email: mpmittal2007@gmail.com
From India, New Delhi
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If you have already joined the company, then the salary breakup must have been given in your offer of appointment letter. The company might have offered you some options to change the components within the CTC. Please provide the salary breakup offered to you so that further advice may be given to you to save the income tax leviable upon you.
Email: mpmittal2007@gmail.com
From India, New Delhi
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The first thing that you have to clarify here is whether it is the CTC or Gross Salary or Net Salary?
From India, Bangalore
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From India, Bangalore
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Hi,
As you mentioned 22 lac per annum:
1. Try to give them basic and special allowances components as little as possible because both are fully taxable.
2. Include the HRA component as it is a highly tax-saving component in the salary structure.
3. Provide other components such as a company car, Sodexo, medical benefits, telephone allowance, meal allowances, and uniform expenses.
4. Using a company car instead of your own car is a significant tax advantage in taxation.
5. By investing under section 80(C) - up to 1 lac, you can save on taxes.
6. Consider section 80D for medical insurance.
7. Also, take into account section 80G for donations.
In this way, you can save a significant portion of the tax amount.
From India, Mumbai
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As you mentioned 22 lac per annum:
1. Try to give them basic and special allowances components as little as possible because both are fully taxable.
2. Include the HRA component as it is a highly tax-saving component in the salary structure.
3. Provide other components such as a company car, Sodexo, medical benefits, telephone allowance, meal allowances, and uniform expenses.
4. Using a company car instead of your own car is a significant tax advantage in taxation.
5. By investing under section 80(C) - up to 1 lac, you can save on taxes.
6. Consider section 80D for medical insurance.
7. Also, take into account section 80G for donations.
In this way, you can save a significant portion of the tax amount.
From India, Mumbai
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Hi Ashwani,
Here is one of the possible salary breakups for 22 lakh that I feel could help: Calculate In Hand Or Take Home Salary Calculator For India: AM22 Applications You can pretty well change the input values directly in the calculator link above and play with various values. Also, please note that the actual take-home amount depends a lot on the individual's tax-saving investments. Let me know if you need more clarification.
Regards, Anil
From India, Delhi
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Here is one of the possible salary breakups for 22 lakh that I feel could help: Calculate In Hand Or Take Home Salary Calculator For India: AM22 Applications You can pretty well change the input values directly in the calculator link above and play with various values. Also, please note that the actual take-home amount depends a lot on the individual's tax-saving investments. Let me know if you need more clarification.
Regards, Anil
From India, Delhi
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Salary less tax - CTC.xls
Typical salary breakup.jpg