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  • Elements of An Ideal Salary

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    shiva_reshs
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    ELEMENTS OF AN IDEAL SALARY basic It is taxable 35-40% of CTC If this is low may loose some benefits tax exempt Least of the below HRA Received 50% of basic / 40% in non metro city Actual rent paid-10% of basic Allowance Temptation towards cash reimbursements helps to reduce tax outgo. Direct Tax Code (DTC) Effect from 1 / 1 / 2012 as per DTC LTA will be tax as income Medical reimbursement raised to 50000

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    ELEMENTS OF AN IDEAL SALARY

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    ELEMENTS OF AN IDEAL SALARY basic It is taxable 35-40% of CTC If this is low may loose some benefits tax exempt Least of the below HRA Received 50% of basic / 40% in non metro city Actual rent paid-10% of basic Allowance Temptation towards cash reimbursements helps to reduce tax outgo. Direct Tax Code (DTC) Effect from 1 / 1 / 2012 as per DTC LTA will be tax as income Medical reimbursement raised to 50000

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    10 views3 pages

    Elements of An Ideal Salary

    Uploaded by

    shiva_reshs
    ELEMENTS OF AN IDEAL SALARY basic It is taxable 35-40% of CTC If this is low may loose some benefits tax exempt Least of the below HRA Received 50% of basic / 40% in non metro city Actual rent paid-10% of basic Allowance Temptation towards cash reimbursements helps to reduce tax outgo. Direct Tax Code (DTC) Effect from 1 / 1 / 2012 as per DTC LTA will be tax as income Medical reimbursement raised to 50000

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    ELEMENTS OF AN IDEAL

    SALARY
    BASIC
    It is taxable
    35-40% of CTC
    If this is low may loose some benefits

    HRA
    Tax Exempt
    Least of the below
    HRA Received
    50% of Basic/40% in non metro city
    Actual rent paid-10% of basic

    Allowance
    Temptation towards cash reimbursements.
    This helps to reduce tax outgo.
    But......
    Medical Expenses
    LTA are exempt if taken twice in four years

    DEFERRED BENEFITS
    If exp are low, than high deferred benefits salary structure is good.
    EPF & Gratuity are tax free income
    BONUS & INCENTIVE
    Straight 30% Tax

    TURNING CONSULTANT
    Suitable for self employed working for short project.
    Whatever the expenses helps to reduce overall tax.

    Direct Tax Code (DTC)


    Effect from 1/1/2012
    As per DTC LTA will be tax as income
    Medical reimbursement raised to 50000/-

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