OFFER LETTER

This query is : Resolved

feel (Querist)
Follow

20 October 2008 Dear Sir,

I have received offer letter for Accounts Executive which shows CTC as follows:

BASIC = 8500.00
HRA = 3400.00
CONVEYANCE ALLOWANCE = 800.00
MEDICAL ALLOWANCE = 1250.00
FLEXIBLE EXPENSES PLAN* = 5150.00
====================================
GROSS PER MONTH = 19100.00

FLEXIBLE EXPENSES PLANT COMPONENT =

FLEXIBLE EXPENSES COMPONENT AMT/SLAB REMARK

Food Coupons if opted for : rs.2000.00 fully tax expemt
Leave Travel Allowance if opted for , the amount witheld per month = amt declared pa/12. tax exemption upon meeting IT requirments
The Same will be paid at the end of the year.
Superannuation if opted for minium Rs.100.00 & maximum upto 15% of basic salary. fully tax exempt.
(Employer Contribution) restricted to Rs.8333.00 p.m.

Provident Fund if opted for , 12% of Basic Salary or 12% of Rs.6500.00. Once opted Employee Contribution fully tax exempt
(Employer Contribution) can't opt out whilst in service

Special Allowance Balacing Figure Fully taxable.

I am not able to come to the net amount per month i will get because of flexible expeness plan, it's confusing me.
So please calculate at your end & tell me how much i will get in hand along with your calculation i.e.esi.pf.pt etc.

What should i do in order to maximum utilisation of Flexible expenses plan component.

thanks in advance.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

20 October 2008 As per the data given by you, The benefit will be only tax saving if you exercise the various options instead of the Fixed allowances. CTC remains unaltered.

feel

feel (Querist)
Follow

20 October 2008 Dear Sir,

thank you for reply.

but i want to know amt i will get in hand per month

feel

feel (Querist)
Follow

21 October 2008 Dear Sir,

I have received offer letter for Accounts Executive which shows CTC as follows:

BASIC = 8500.00
HRA = 3400.00
CONVEYANCE ALLOWANCE = 800.00
MEDICAL ALLOWANCE = 1250.00
FLEXIBLE EXPENSES PLAN* = 5150.00
====================================
GROSS PER MONTH = 19100.00

FLEXIBLE EXPENSES PLANT COMPONENT =

FLEXIBLE EXPENSES COMPONENT AMT/SLAB REMARK

Food Coupons if opted for : rs.2000.00 fully tax expemt
Leave Travel Allowance if opted for , the amount witheld per month = amt declared pa/12. tax exemption upon meeting IT requirments
The Same will be paid at the end of the year.
Superannuation if opted for minium Rs.100.00 & maximum upto 15% of basic salary. fully tax exempt.
(Employer Contribution) restricted to Rs.8333.00 p.m.

Provident Fund if opted for , 12% of Basic Salary or 12% of Rs.6500.00. Once opted Employee Contribution fully tax exempt
(Employer Contribution) can't opt out whilst in service

Special Allowance Balacing Figure Fully taxable.

I am not able to come to the net amount per month i will get because of flexible expeness plan, it's confusing me.
So please calculate at your end & tell me how much i will get in hand along with your calculation i.e.esi.pf.pt etc.

What should i do in order to maximum utilisation of Flexible expenses plan component.

thanks in advance.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

21 October 2008 You have not given what choices you are opting. But based on my own assumption I am just giving an idea. The calculations will vary depending upon what choice you make.

Basic 8500
HRA 3400
Conveyance 800
Medical 1250
-----
Total 13950
Add:Bal FA 855
-----
Total 14805
Less PF
Employee 1020
------
13685
TDS nil
------
Take home 13685
------
Flexible Allowance 5150
Less PF 12% basic 1020
SAF15% basic 1275
----
Balance FA 855
-----
Taxable sal 14805
Less conv. all 800
Less PF 80C 1020
Less possible
medical cliaim 485
-----
Taxable sal 12500

feel

feel (Querist)
Follow

21 October 2008 DEAR SIR,

AS PER YOUR CALCULATION MY TAKE HOME SALARY WILLBE 13685.00

BUT IF I DONT USE FACILITY OF FOOD CUPONS IT WILL BE 15685.00 (13685+2000)

IS IT SO?

AND WHAT IS SUPERANNUATION & WHAT TO DO TO AVOID DEDUCTION OF THE SAME.

feel

feel (Querist)
Follow

23 October 2008 DEAR SIR,

AS PER YOUR CALCULATION MY TAKE HOME SALARY WILLBE 13685.00

BUT IF I DONT USE FACILITY OF FOOD CUPONS IT WILL BE 15685.00 (13685+2000)

IS IT SO?

AND WHAT IS SUPERANNUATION & WHAT TO DO TO AVOID DEDUCTION OF THE SAME

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

30 October 2008 Yes If you do not use Food coupon but opt for cash what you say is correct. But would be taxable.

Super annuation is also optional according to you. But if you do not opt for cash allowance will go up to that extent. But taxable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now