Salary Breakup

This query is : Resolved

Harish Naidu (Querist)
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30 April 2009 Hi,

Below is the current breakup of salary in our company

CTC PER ANNUM 2100000
CTC PER MONTH 175000
SALARY STRUCTURE
Basic & DA 87500
HRA 35000
Conveyance 800
CCA 23018
Total [A] 146318

STATUTORY BENEFIT
PF Employer's Contrib 10500
Gratuity 3640
Total [B] 14140

MONTHLY REIMBURSEMENT
Medical Reimbursement 1250
LTA 7292
Fuel Reimbursement 6000
Total [C] 14542

GRAND TOTAL [A+B+C] 175000

As most of the employees are high salaried persons in our company, I want to know whether we can give any more exemptions to employees like food coupons, driver salary, vehicle maintenance etc.

If we can,please let me know the maximum amount we can give on food coupons, drivers salary and vehicle maintenace.

Kindly help me out in this regard.

Kedar Pande

Kedar Pande (Expert)
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27 May 2009 Consider the following
a) Rent Free Accommodation or House Rent Allowance should be availed particularly in case of employees who do not own a house or a flat.

b) Expenses on purchases and maintenance of employees’ uniform can be paid or reimbursed by the employer and the same is not considered as a perquisite u/s 10 (14).

c) If any allowance is received for education and hostel stay of employees’ children from the employer, exemption can be claimed u/s10 (14).

d) Telephone facility received by an employee at his residence is not taxable in the hands of the employee as against telephone allowance which is fully taxable.

e) The employee should avail the facility of motor car (as also its maintenance and running expenses) from the employer. The perquisite value is nominal considering actual expenses on car.

f) An employee should opt for medical reimbursements which are exempt upto Rs.15, 000.00 p.a. as against any medical allowance which is fully taxable.

g) In case, the employer is liable to pay Fringe Benefit tax (FBT), then amount of fringe benefits, shall not be taxed in the hands of the beneficiary employee. Again, if salary is received in arrears or in advance, one can claim relief u/s 89 (1).