Bifurcate salary in basic & hra for some employees only

Kumar (Founder) (63 Points)

13 April 2016  

Hello Everybody,

Here I am in a dilemma, need your guidance on the same. I have few employees who have high salary & under the liability of TDS but they can save if I bifurcate their salary in Basic & HRA, but I do so then I need to deduct ESIC & PF for  employees who have less salary around 17K to 18K.

Is it legal for a company to bifurcate salary of a few employees only?

Thanks for your time & valuable advice.