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  • Component Monthly Annual Taxable

    Uploaded by

    Sachi Surbhi
    17 views3 pages
    This document summarizes the compensation breakdown for an employee including tax treatment of each component. The employee receives a basic salary of Rs. 25,000 per month (Rs. 3,00,000 annually) which is fully taxable. They also receive various tax exempt allowances totaling Rs. 15,250 per month. Additional benefits include medical insurance and provident fund contributions that are also tax exempt. The employee's fixed pay is Rs. 8,33,333 per month and variable pay is Rs. 1,66,667 per month. The total taxable income is Rs. 8,66,358 and the total tax amount due is Rs. 77,221.

    Original Description:

    salary structuring

    Original Title

    Salary Structuring

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    This document summarizes the compensation breakdown for an employee including tax treatment of each component. The employee receives a basic salary of Rs. 25,000 per month (Rs. 3,00,000 annually) which is fully taxable. They also receive various tax exempt allowances totaling Rs. 15,250 per month. Additional benefits include medical insurance and provident fund contributions that are also tax exempt. The employee's fixed pay is Rs. 8,33,333 per month and variable pay is Rs. 1,66,667 per month. The total taxable income is Rs. 8,66,358 and the total tax amount due is Rs. 77,221.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views3 pages

    Component Monthly Annual Taxable

    Uploaded by

    Sachi Surbhi
    This document summarizes the compensation breakdown for an employee including tax treatment of each component. The employee receives a basic salary of Rs. 25,000 per month (Rs. 3,00,000 annually) which is fully taxable. They also receive various tax exempt allowances totaling Rs. 15,250 per month. Additional benefits include medical insurance and provident fund contributions that are also tax exempt. The employee's fixed pay is Rs. 8,33,333 per month and variable pay is Rs. 1,66,667 per month. The total taxable income is Rs. 8,66,358 and the total tax amount due is Rs. 77,221.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Component

    Basic
    HRA
    Medical reimbursement

    Monthly Annual
    Taxable
    25000
    300000 Fully Taxable
    12500
    150000 Tax Exempt
    1250
    15000 Tax Exempt

    meal vouchers
    LTA
    Transport allowance
    CHA
    CEA

    2600
    4166.667
    1600
    600
    200

    31200 Tax
    50000 Tax
    19200 Tax
    7200 Tax
    2400 Tax

    Exempt
    Exempt
    Exempt
    Exempt
    Exempt

    Medical insurance premium

    684.3333

    provident fund
    gratuity
    special allowance
    Fixed Pay
    Variable Pay
    Total Pay

    3000
    36000 Tax Exempt
    1202.5
    14430 Tax Exempt
    30529.83
    366358 Fully Taxable
    83333.3 1000000
    16666.7
    200000
    100000 1200000

    8212 Tax Exempt

    Variable pay is always in the next cyclee , because it comes with the april salary. Here we are putti

    Total Taxable amount

    866358

    professional tax(not
    863858 applicable on all states)
    749858 after 80c deduction
    Provident fund is a part of 80c
    Tax amount
    74971.6
    Cess
    2249.148 usually added after surcharge/reba
    Total tax amount
    77221
    Surcharge(people
    earning > 1cr taxable
    income

    Rebate(people earning
    below 5Lacs)
    if your total tax is less than 2000 rs you don

    april salary. Here we are putting it in the same cycle for calculation sake

    ed after surcharge/rebate

    than 2000 rs you dont need to pay tax, you will get refund

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