Description

Cost to Company (per year)

Taxable (per year)

Basic Salary @ Rs. ?? pm

House Rent Allowance @ Rs ?? pm

Provident Fund contribution by employer @ 12% of basic

Contribution to superannuation fund @ % of basic Medical Reimbursement

Insurance premium paid by the employer in connection with group insurance policy taken by the employer Petrol expenses @ Rs ?? Pm (Provision of car for Official Purposes) Driver salary Rs ?? Pm (Provision of car for Official Purposes) Children Education allowance

Leave travel allowance (one month of basic)

Re imbursement of Entertainment Expenditure Uniform Allowance Books allowance TOTAL Other Costs 0 0

Gratuity (Mandatory)

Note: The figures are based on current tax laws and are bound to change from year to year.

Non Taxable Allowance & Perks (per year)

Remarks

This is the basic salary - the other allowances are expressed as a % of the basic Typically a % of basic salary depending on city. The part of full of HRA will be non taxable as per tax rules. This is given to give employee tax benefit. Similar 12% (of basic) contribution is made by employee (deducted by employer from his salary) and total is deposited with EPFO. This is mandatory as per government rules.

Up to Rs. 15,000/- per year is tax free on production of medical bills. Given to give employee tax benefit. Up to Rs. 10,000/- is non taxable

Upto Rs. 60,000/- per month

Uniform allowance, books allowance and children education allowance would not be taxable to the extent they have been incurred and are supported by relevant vouchers/bills. One month basic is non taxable on production on tickets etc. LTA would be exempt to the extent the same is spent However, the same would be taxable twice in a block of four years Vouchers need to be submitted

ange from year to year.