04 August 2010
Dear Sirs/ Madams, Mr. X (an employee) is getting Rs. 45,833/- per month as his gross salary. The salary for him per month has been structured as follows: Basic Salary - 22917.00 HRA -9166 Conveyance - 800 Medical - 1250 Food Coupon - 1300 LTA - 1910 Special Allowance - 8490 Total = 45833.00 Please advise whether this is correct?
There are no hard & fast rules for salary structure. It depends upon company to company & its policies of compensation.
However, generally, companies follow certain limits for some heads according to Income tax laws for convenience. In your case, these limits appears to be followed like :
HRA : 40 / 50 % of Basic Conv Allow. : Rs. 800/- p.m Medical : Rs. 1250/- p.m
Basic : 40% ot total gorss salary HRA : 50% of Basic Salary Convey ALlow : 800 Pm. Medical Remibursement : 1250 Pm Children Education Allowance : 200 Pm Other Allowance
CAclubindia
