Must components in your Salary to minimise tax burden. CA Sandeep Kanoi. What does, however, ? Salary includes basic salary, bonus, wages, pension, fees, commission, gratuity, encashment of leave salary, advances and arrears, profits in lieu of salary, allowances and perquisites. Here are some of the safe components of your salary structure which can minimse your tax burden and help you plan your Salary Structure –. However, you cannot take benefit of HRA, if you live in a rent- free accommodation or live with your family or in your own house. Salary register with general head usually required as per Payment of Wages Form IV. Labour Laws, Industrial Relation & Compliance Management Professionals. Form BCEA4 - Pay Slip; Form LRA 9.1. Must components in your Salary to minimise tax burden. Petrol and Drivers Salary but since 1st April. Taxability of Provident Fund - Recognized, Unrecognized & Statutory. Budget 2. 01. 5 has proposed to increase the exempt allowance limit to Rs. If leave encashment is done on the termination of employment through superannuation, then it will be exempt from tax up to certain limits. Leave Salary encashment Exemption, Calculation, Download calculator. If you are paid a medical allowance instead of reimbursement, the same is fully taxable. This however needs to be a uniform not a civil dress. For example, provision of a computer or laptop owned by the company and provided to you or any member of your household is not taxable in your hands. How to Structure Salary Packages. Most small business owners find it difficult to structure remuneration packages that meet their organisation. Getting it right is critical. There are so many different ways to determine remuneration and in different situations or circumstances, you may make different choices. He advises business owners to take several factors into account. What To Consider. Organisation strategy. Search Results: salary slip format download. Your salary structure and allowances will be given with your appointment letter as mutually agreed. Example of an Employment Contract All about Employment Contracts, Fixed Term. A comprehensive contract which states such details as salary. Income tax Planning in respect of Salary. Actual HRA on your pay slip; ii) 40-50% of your basic salary. Comparison of Format of Profit & Loss Account and.
In the same way that the vision and mission inform the strategic objectives of the company, so business objectives should inform the remuneration structure of the company. Also consider: The extent to which you want a centralised or decentralised approach. The culture and design of the organisation. Where the organisation is in its lifecycle. Industry and product growth rate and business lifecycle stage has a significant impact on remuneration strategy. For example, a company in the embryonic stage might place less emphasis on salary, benefits and perks, and more emphasis on share options and long- term incentives. A more mature organisation might focus on ensuring salary and perks remain competitive, link bonuses to productivity improvement and have a reduced concern for long- term incentives. A trend is not necessarily best practice; but if more and more organisations are considering it, it may be. Reward preferences by employees. Different employees have different drivers and may have diverse reward preferences. A weekend away might be suitable for some, while others will prefer additional leave or pay. Read Next: HR Dilemma: Disclosing Staff Salaries. Components of Remuneration. Traditionally there are four main components of remuneration . This provides an employee with fair pay for a day. Fringe benefits and perks. The purpose of these is to provide special payments and programmes that may set the organisation apart from its competitors. Short- and medium- term incentives. These are crucial for retaining employees and focus attention on the achievement of longer- term strategic imperatives. This is often added when the long- term incentives are not in place or not working for some reason or another. When implementing a retention scheme you need to decide who it will benefit (scarce skills, for example). Most importantly, such a scheme needs to be underpinned by a robust business case.
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