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ALLOWANCES: VARIOUS

TYPES, REASONS AND
EFFECTS
HCL INFOSYSTEMS, INMOBI,
CYBERFUTURISTICS, INDIAN ARMY
Presented By:
Pramod P Nair (A-44)
Harshit Shrotriy (A47)
Amrita Pritam (A32)
Shikha Dawar (A-34)
Anisha Yadav (A-01)

ALLOWANCES


Fixed monetary amount paid by the employer to the employee
(over and above basic salary) for meeting certain expenses.
Generally taxable and included in gross salary.
Three categories
I. Fully taxable cash allowances
II. Partially exempt cash allowances
III. Fully exempt cash allowances

FULLY TAXABLE ALLOWANCES
• Dearness Allowance
• Compensatory Allowance
• Tiffin / Lunch Allowance
• Overtime Allowance
• Fixed Medical Allowance
• Servant Allowance
• Other allowances

PARTIALLY EXEMPT ALLOWANCES • House Rent Allowance (H.A.R.) • Special allowances .

FULLY EXEMPT ALLOWANCES • cost of travel on transfer • tour or journey in connection with transfer • to meet the ordinary daily charges incurred on account of • • absence from his normal place of duty conveyance in performance of duties of an office expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office .

INFOSYSTEMS .

• • • • It is headquartered in Noida.. Vision Statement: “Together we create the Enterprises of Tomorrow” MISSION STATEMENT: “To provide world-class Information Technology solutions and services in order to enable our customers to serve their customers better”.7762 people. is an India-based hardware and systems integrator with a focus on emerging markets. • It has a strong distribution network of 93.HCL Infosystems: A Brief • HCL Infosystems Ltd. a listed subsidiary of HCL. Employing.000 towns in India.2 billion global enterprise. . Middle East & Africa. HCL has a presence in 170 cities and 505 points of presence reaching 4000 towns throughout India an operations in emerging markets including South Asia. • • HCL is a $ 6.000 outlets in over 90.

insurance and handling costs of household effects on actual. by the most cost-effective mode. The employee must be part of the travelling group. non taxable.000 interest free loan towards down-payment of loan on a 20 months recoverable basis.Two Wheeler Scheme • Two wheeler schemes applies to OJT & P0 grade employees in field engineer role.  LTA could be claimed for travel within India for self & family. • The Organization shall enable field engineers to purchase a two wheeler for work related travel by providing: • INR 10. completing 3 months of services with HCL. the claim limit will be as mentioned in the appointment/ appraisal letter. • Reimbursement of transportation expenses for a two-wheeler or a car Leave Travel Allowance ( LTA): LTA claim limit for employees in grade P3/ X3 & above (similar grades in other series) will be as per the Flexi Benefit Plan declaration made by self. For other grades.  Employee is required to avail leaves (including minimum 3 days of privileged . Transfer Policy :P • Reimbursement of expenses incurred on packing. • Reimbursement of expenses as per mileage claim entitlement. in absence of whom the LTA cannot be claimed as. transportation.

Local Conveyance Policy • This policy covers the reimbursement of expenses for any local travel made by the employee to meet official needs.5 (employee at any level may use a two wheeler) Grade/ Level P series level 7 & above Mode of Conveyance Public transport/ Auto/ Taxi P series level 4.3 Taxi Type Medium segment car Small segment car Public transport/ Auto/ * Taxi NA Domestic Travel Policy: • The policy details travel entitlements and allowances applicable for employees making domestic travel to meet work commitments. • Reimbursement claims should be made by 18th of the same month or latest within 60 days of the actual expense incurred. Applicable Grade Level P2 & above Mode of transport 4 Wheelers Reimbursement per km.6 Trainees/ X series/ M series/ P series level 0 . • Local office travel is restricted to 150 Kms or within municipal limits of the city. • All original bills and receipts should be retained and attached along with the Travel Expense Voucher to claim the expenses .5 All Levels 2 Wheelers (Bikes) 2. (in INR) 6.

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.InMobi: A Brief • InMobi was founded in 2007 in India with offices in several countries. • InMobi aims at redefining mobile first customer-engagement platform through its suite of products ranging from app distribution & monetization to brand advertisements. • InMobi won a coveted spot in MIT Technology Review's 50 most disruptive companies of 2013.

1. Medical Allowance: Maximum of Rs.000/.15.is exempt from income tax. . HRA received Rent paid less 10% of salary (Basic) 50% of salary (Basic) if the accommodation is situated at Mumbai. 3.800/. 2. Kolkata. 3.Allowances 1. 2.per month. Chennai or Delhi. House Rent Allowance: The least of the following amount is deductible from the HRA for computing income tax. Transport Allowance: Conveyance is exempted up to Rs.

Telephone Allowance: Exempted if the telephone & internet has been used at home towards company use. 5.Allowances Continued. Leave Travel Assistance Reimbursement/Allowances: Actual travel fare incurred by an employee and his family to any place in India is exempt from tax. 6. 4. . Special Allowance: The balance amount will be special allowance which will be fully taxed.

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‘Service Before Self’. 158 Aircrafts.000 Active Personnel. Size: • • • 13.000 Reserve Personnel. • Part of ‘Ministry of Defence. • • • Headquarters at New Delhi. Commander-in-Chief of Army.INDIAN ARMY: A Brief • • Formed in 15th August 1947. • Chief of Army Staff.The President of India. .General Dalbir Singh Suhag Motto.Indian Armed Forces’.25. 9.60.

000 PM Rs. 11. DA.000 and  Rs. the rates of these allowance have been further enhanced by 25% as Dearness allowance has gone up by 50%.000 . Accommodation Kit Maintenance Allowance All officers Uniform Allowance  (Outfit Allowance) All officers Qualification Pay/ Grant for Service All officers undergoing specified courses (One Time) Rates Rs. 14.000 PM Rs. 9. 3000 every Three Years Rs.000 PM Rs. 3.200 PM Rs.200 Rs. 400 PM Initial Rs. 6.14.200 + DA PM in A1/A cities and  Rs 1600+DA PM at other places 10-30% of Basic Pay (Pay Band + Grade Pay + MSP) Rs.000 to 20. 4. 9. House Rent Allowance and Transport Allowance. This includes Basic Pay. Military Service Pay.200 PM Rs.Allowances Paid to Officers NOTE: In the case of allowances specific to Defense Forces. These rates are not statutory and are subject to change. Tech Pay. 65000/.per month. Allowances To Whom Applicable Field Area Allowance Officers Posted to Field Area Officers Posted in High  High Altitude/ Attitude/Uncongenial  Uncongenial  Climate  Climate Siachen Officers Posted in Siachen Officers Posted as Army  Flying Pay Aviators Officers Posted in Active Parachute Pay Parachute BNs/Regt Special Forces Officers posted in Special Allowance Forces Transport Allowance Officers Posted in  Peace Stations House Rent Allowance To officers not provided  Govt. 1. Cost to Company [CTC]: The CTC for a Lieutenant would be approximately Rs. Grade Pay.

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Sheets. • leading manufacturer of Paramount Expanded Cellular Polyethylene Foam. Hoses. Rods and Air Bubble Film rolls . • Head office in new Delhi and manufacturing units in sonipat .PARAMOUNT: A Brief • Established in 1977 • Has a turnover of over 100 cr.

ALLOWANCES Overtime allowances Fixed medical allowances Tiffin / Lunch Allowance City Compensatory Allowance Other allowances .

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There is new product launched called the “Data . Inbound captive unit covering the US market. SERVICES PROVIDED: Data Center Solutions: Powerful Web hosting solutions and services. encompassing several business verticals and niche markets. Managed Outsourcing services: World class Technical Support and business process outsourcing services delivered via their own 500+ seater IT and business hub. Cloud storage solutions: Deliver performance oriented. • vision : providing world class data center solutions and managed outsourcing services for esteemed customers from all over the world.CYBER FUTURISTICS: A BRIEF • Founded in the year 2000 • India’s leading provider of Data Center solutions and managed outsourcing services. smart cloud computing services to boost organizations.

M6 level employees (depends on the target) .e from M0 to M6 There are three ways in which HRA is calculated : • Actual house rent allowance received from your employer • Actual house rent paid by you minus 10% of your basic salary • 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro Conveyence allowance : 800 to all the grade employees Medical allowances : 1250 to all the grade employees Child education and hostel fee : 1000 to all level employees Special allowance : depending upon the working conditions of the employees Flexi-basket : given to only M4.ALLOWANCES HRA : given to all the levels of the employees i. M5.

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Maharashtra.17 billion (2011/12) US$ 2. Chandrasekaran (CEO & MD) US$ 10.About TCS Industry Founded Founder(s) Headquarters Key people IT services .076 (Sep 2012) . IT consulting 1968 J R D Tata Mumbai. India Ratan Tata (Chairman) Revenue Profit Employees N.2 billion (2011/12) 254.

leaving a net increase of 39. and • • the second-largest employer among listed Indian companies (after Coal India Limited).  TCS has announced plans to recruit 60.969.345 were based in the rest of the world.737 in the rest of the world. of whom 36.000 graduates in the 2012/13 fiscal year.232 were based in India and 3.In the same period a total of 30.431 staff left employment with TCS.055 were based in India and 9. .  In the 2011/12 fiscal year TCS recruited a total of 70. of whom 61.• TCS is one of the largest private sector employers in India.400 new staff.

. profit sharing and stock options.  Component of fixed and variable pay were determined • Fixed Pay. This model measured operating and financial performance of the organization.bonus. pension. To assess employees’ contribution. at the company. • Variable Pay.EVA compensation model for TCS TCS adopted EVA aimed at creating economic value by concentrating on long term continuous improvement. Basis for giving compensation to employees.wages.

400 15.880 Gross salary Annual components/ Retrials Health insurance Provident fund Gratuity Total of annual components Total gross 4.581 4.25.061 22.26.120 6.080 Annual 1.600 Special allowance 87.000 Variable allowance 93.600 Bouquet of benefits 95.03.661 .TATA CONSULTANCY SERVICES SALARY INFORMATION Component category basic Annual in INR 1.

TCS defined structure of BoB Components House rent allowance Annual in INR 50.380 Gross bouquet of benefits 95.880 .000 Food coupons 6.400 Conveyance allowance 9.000 Personal allowance 16.500 Sundry medical reimbursement 3.600 Leave travel assistance 10.

Summary of Allowances .

Company / Allowanc es DA HRA Transpo Trave rtation l HCL Infosyste ms  InMobi  Indian Army Paramoun t           Cyber Futuristics TCS  Medic al Relocati on Mobil e Unifor m/ Dress Region al Educati on Servi ce Speci al                         .