Salary Re-structuring

Amit (Service) (457 Points)

15 March 2008  

Dear All CaClubIndia Members,


Can you guide me on the salary re-structuring in most efficient way which proves to me minimal TDS deduction.


Here is the existing structure for our mgmt level employee on avarage


Basic Salary     Rs. 25,000=00


HRA(20%)      Rs.  5.000=00


Edu Allwnce    Rs.    700=00


Conveyance    Rs.   2,000=00


Cell-Phone Allow Rs. 400=00


                                _________


                               Rs. 33,100=00


Over and above employee is eligible for following annual benifits.


1. LTA equivalent to One month basic salary


2. Medical Re-imbursement equivalent to One month basic salary


3. Performance Incentive @ 25% of annual basic salary.


4. Gift by way of Gold Rs. 50,000=00


So the total CTC comes to Rs. 5.72 Lacs


Is there any possibility of restructuring to minimise the income tax.


 


Please Advise.....


Amit


 


1. Basic salary is covering almost 50% of whole salaryary structure.
2. Almost all the annual benefits linked to basic salary we can not cut doen the basic salary limit for re-structuring.