BIFURCATING SALARY – Semantic Taxgen Pvt Ltd
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BIFURCATING SALARY

November 11, 2017

Bifurcation of  Salary

As we discussed in detail in our last article what is the meaning of salary and their component including the absolute and conditional exemption under salary http://semantictaxgen.in/salary-under-income-tax-and-tds , Now we can discuss to frame their ideal stucture for the various business.

Normally salary could  be bifurcated as follows :-              

  • Generally Basic is 50% of Total Salary
  • HRA is 50% of BAsic
  • Transport allowance is Rs 800
  • Medical is Rs 1250
  • Education allowance @ 100 each child per month
  • Uniform allowance 2000 P.m.
  • Special Allowance as Balance#
  • PF @ 12% of Basic
  • Employees Share in ESI 1.75 %

#Location specific allowance hilly area allowance /tribal area allowance/ Underground allowance (These allowance could be shown alternatively as depends upon location) as the balance.

#In case of Government Servants Prequistes could be added facility such as Govt servants , Gardner, sweeper, Telephone and anything as could be applicable.

 

 

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