Salary
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 September 2012
How to form a salary structure.What should be the components of CTC so that the tax liability comes minimum for an employee.It is a 3000 crores manufacturing company.
CA.Vinita Gupta
(Expert)
23 September 2012
1.Basic Salary should be above Rs.6500/- If the salary is within a range of Rs5000/- to Rs.10000/- keep the basic as Rs.4300- (min)
2. Providend Fund Employers Contribution 12% and Employeess 12% (Calculated on Basic)
3. If the Salary is above Rs.15000/- then it will not attract ESI, Below Rs.15000/- ESI would be Employers 4.75% and Employees 1.75%
4. Keep HRA as one of the components which will help employees to save tax
5. Uniform Allowance can be included as a component
6. Mediclaim Reimbursements Rs.15000- p.a
7.Bonus should be one months Salary.
8.Sodexo passes can be included.
9.P. Tax would be as per slab based
2. Providend Fund Employers Contribution 12% and Employeess 12% (Calculated on Basic)
3. If the Salary is above Rs.15000/- then it will not attract ESI, Below Rs.15000/- ESI would be Employers 4.75% and Employees 1.75%
4. Keep HRA as one of the components which will help employees to save tax
5. Uniform Allowance can be included as a component
6. Mediclaim Reimbursements Rs.15000- p.a
7.Bonus should be one months Salary.
8.Sodexo passes can be included.
9.P. Tax would be as per slab based
24 September 2012
consider taxfree components like yanceibu/ion to superannuation scheme/Leave travel allowance etc
26 October 2012
Yes I agree with Vinita abd SR. In addition to the same kindly also give some room for children education and payment of LIC. If the house is rented then give HRA. If it is owned by the company then deduct 10% of the basic salary
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