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

CA.Vinita Gupta (Expert)
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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

CA Chandrasekaran.S.R

CA Chandrasekaran.S.R (Expert)
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24 September 2012 consider taxfree components like yanceibu/ion to superannuation scheme/Leave travel allowance etc

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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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