How to bifricate Total salary in Basic, HRA , Education Allowance, attendence allowance, conveyounce, (PF , ESIC APPLICABLE TO COMAPNY). What is the persentage.
Can you give me information please.
Ajita
15 Replies
(Guest)
Bifurcation of salary are depends on CTC. Generally Main part of any salary is your Basic. Other allowances are based on it. HRA @ 35%, medical 8-10%, LTA 15% , PF & ESIC as per Govt norms, Education allowance may be given as 150-200 per month as above that it will be taxable.
Other allowances like telephone, Books & Periodicals etc can be paid by a fixed amount.
>> Rajesh
Nikhil
(Internal Auditor)
(208 Points)
Replied 30 April 2009
Generally Basic is 50% of Total Salary
HRA is 50% of BAsic
Transport allowance is Rs 800
MEdical is Rs 1250
Education allowance @ 100 each child per month
Spl Alowance as the balance
PF @ 12% of Basic
Employees Share in ESI 1.75 %
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 30 April 2009
Dear,
Salary basic can be 50% but all other components are variable dependes on CTC.50% HRA 10% medical Then fuel allowance & education allowance ,Entertainment exp./LTA etc but these all are based on CTC .Tax is seperate issue.
Nikhil
(Internal Auditor)
(208 Points)
Replied 30 April 2009
I was informing him the above for tax saving purpose also...
i have stated thats its the fixed guidelines by any one...
Regards
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 30 April 2009
Dear Nikhil,
Tax saving components will be same in all cases. but there is no fixed guideline for salary structure.All it depends on CTC
CA.Nikhil Gupta
(PRACTICE)
(768 Points)
Replied 01 May 2009
I agree with Sh Sharma. Salary structure vary on the basis of CTC.
sachin patil
(Accountant)
(102 Points)
Replied 01 May 2009
Sir, i need help regarding professional tax. when the professional tax applicable. the PT can deduct on ly on basic or with allowance. what allownaces are not attaract PT act.
Devendra Sen
(Accountant)
(26 Points)
Replied 08 May 2009
in Salary bifurcation in pay scale like 5000-150-8000,here basic =5000, Dearness pay =50%of basic , Dearness allowance =47%of ( basic +Dearness pay ) medical allowances =10% of basic, HRA = 20% of Basic , PF = 12% of (Basic + Dearness pay + Dearness Allowance ) or 780, which ever is less , convence may be fixed, and other allowances may be given to the employees these all percentage may be changed as per rules of company
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 08 May 2009
Ajitha
In brief ,It suggested that U follow the Chapter Income form Salary in ready reckoner and see the chapter exemption u/s 10 and accordingly U can bifurcate to hav maximum benefir of IT. There is no specific bifurcation of Salary. Accoring to Basic + DA and on calculate benefit of sec. 10 as per IT Act.
Surana, Chennai
9952967237
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 09 May 2009
Dear Surana,
Have u seen the question Ajitha is asking for bifracation not tax advantage.If u put section 10 then salaries will be limited to a level.There is no level for which question is raised.Even section 10(13) have a%age of basic & other but their is a normal course of practise & system depends on %age professionals are doing & we have that in all big industrial house/Groups.
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 09 May 2009
Mr. Sharma
If U read my reply carefully I have mention : there is no specific Bifurcation of Salary. It is suggested U to bifurcate salary, Keeping in mind sec. 10. If U bifurcate salary without knowledge of exemption and taxability of allowance Recepient will be looser of tax. For example if U give cosolidated salary of Rs.50000 p.m. and bifurcate 5000 Basic + DA and balance 45000 HRA What will be your reply ? Think it. If U keeping in mind exempted allowance in mind e.g. Transport/Conveyance Allowance, Educational Allowance etc. ( to some extent are exempted )bifurcate, person will hav benfit of tax.
One thing I will mention herewith that we r sitting herewith to share knowledge, opinion and suggestion not comment on reply. If U feel there is mistake in reply U can mention your reply need not to pass comment alike this : " HAVE U SEEN THE QUESTION ......."
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 09 May 2009
Mr Surana.Read carefully & reply what is question.There are certain rules & &ages for bifracation.How u are puting 5K basic & 45 K HRA.u must understand the taxablity of perks & tax laws to reply.When bifraction takes place,If any body coming & asking to tax relief? No Dear read the question & reply .Don't reply blindly & do some excersise for answer.Don't u know howmuch tax advantage one can have.perks tax free are very limite but question doesn't ask for this.He is asking for bifracation .I suggest u go thru question twice & reply
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