How to Configure my Salary Structure

Rohit Rattan 1
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Hi Pankaj,

I am Rohit from Gurgaon and i work for a company in Chandigarh (Working from home). My Salary is 25500 and production bonus is 18000-20000 per month. so a total around 45000 per month. Now our company CA has given me a Salary Structure of 18000(basic)+ 5000(HRA)+ 2500 (TA) = 25500, bonus extra. Because of which my last year income tax went through the roof. So i had a fight with CA and for last quarter he made my Salary structure as 16000 (basic)+ 8000(HRA) + 1500(TA)= 25500, bonus extra. Now can you help me with a better salary structure, i tried my self with your income tax calc which came out like this = 15500+9000+1000. though it seems like i am calculating it wrong somewhere. Your help would be appreciated as i have meeting with CA next Monday. Thanks, Rohit Rattan

transport-allowance salary-structure hra-exemption basic-salary house-rent-allowance
1 Answers
  • HRA should be max 50% of basic salary for best optimization.
  • Transport allowance should be rs 800 per month as thats is thats maximum amount which is non-taxable.
  • If possible you can get medical reimbursements (Rs 1250 pm), Telephone reimbursements (e.g. 1000 Rs pm) and Internet reimbursements (1000 Rs pm) added to structure.

Basic salary would be 14300 and HRA would be 7150.
On showing house rent of Rs 7200 pm, 5720 Rs would be exempted per month for HRA, so only Rs 15730 would be taxable per month net.

Pankaj Batra5212

Thanks Pankaj.

Rohit Rattan•
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