Chitra Sharma (Executive - HR) 31 March 2008

Salary Structure - Tax Saving

Hi!

Can anyone provide me with a salary structure where in maxamium of tax savings can be done. Thank U.

Chitra

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11 Replies

shiva shanker (Legal Officer) 31 March 2008

Hi as per your querry, more details are required to answer properly. But, u can redeem your salary cutting by providing the details of your savings like LIC, or any other premium receipts to the concerned tax authorities. Then they will redeem your TDS. If u r not satisfied u can ask for more.

Chitra Sharma (Executive - HR) 31 March 2008

Thank U Shiva. But all that has been done. The problem is that v are having 3 different types of structures in our company now we want to make one uniform structure. So if you could pls suggest me a kinda of structure were maximum amount of tax saving could be done. Our structure already includes Basic, HRA, Conveyances, Medical, Updates, PT, PF, Bonus apart from these are there any components required for tax saving.

Guest (n/a) 31 March 2008

We can help you to set up a uniform structure that would be generally acceptable to all groups of staffs. Please do write to us on the email id provided.

Guest (n/a) 01 April 2008

Please mail be salary structure with maximum tax saving

shiva shanker (Legal Officer) 01 April 2008

Hi Chitra, as per your salary structure I can suggest only one thing that, u can add more incentives or allowances and to produce Policy details if any for exemption of tax. for more u can mail me.

Guest (n/a) 01 April 2008

Hi, You can have flexi salary structure. It means company will fix CTC per employee. Out of this only basic will be decided by the company as per grade and balance amount is flexi salary. The respective employee will choose components like HRA, CCA, Edu All, etc depending on his need and his tax saving. e.g. A person who is paying more rent can opt for more HRA, A person who wants more take more can take less LTA, Medical etc. This will satisfy the need of all employees. Further you can allow employee to changes components of flexi package once in a year Thanks Rajendra

Chitra Sharma (Executive - HR) 01 April 2008

Thanks Rajendra. But this might create a confusion in long time. And thank u shiva for ur advice also.

Atul Kumar (CA) 02 April 2008

Chitra u may also provide for LTA if the empoyee provides any detail of travelling for 2 years in Block of 4 yrs.

Atul 02 April 2008

Hi Chitra, decide the CTC of an employee, fix a part of the total CTC as basic, HRA, Transport allaowance,etc. and keep the other part as flexible pay where u can reimburse the employees their expenses on submission of the expense vouchers but on such expenses company have to pay FBT which also can also be recovered from the employees

harish sharma (LLB,(CA)) 14 April 2008

first of all there is necessary of your salary structure.suppose u have 15000p.m package then for tax benifit it is advisable to to take LIC premium , make Fixed Deposits ,Contribution in Employees contribution to PF,. etc all are subjectyed to 100000 p.a. only . For further detail you can contact me by phone or mail. my no. is 9704083077.Ok good bye