Tag Archives: #SalaryComponents

CTC ( Cost to Company) Vs Gross Salary

CTC VS Gross Salary CTC (Cost to Company): Cost to company represents the total expenditure incurred by a company on an employee annually. It encompasses not only the basic salary but also various allowances, perks, and benefits provided by the employer.   Components: 1. Basic Salary: The foundational component of CTC, usually constituting a significant… Read More »

How to tax planning for salary

Tax Planning for Salary   Tax planning for salary earners involves various strategies to optimize your tax liability. Here are some tips to consider: 1. Understand your tax brackets: Familiarize yourself with the income tax brackets and rates applicable to your salary. This will help you determine the optimal allocation of your income to different… Read More »

Tax planning for salaried employees?

Tax Planning for Salaried Employees   Tax planning for salaried employees involves utilizing various strategies to optimize your tax situation and reduce your tax liability. Here are some key considerations: 1. Understand Tax Deductions: Familiarize yourself with the deductions available to salaried employees. This includes deductions for expenses such as house rent allowance (HRA), standard… Read More »

Which allowances are taxable under the Income Tax rules of India?

   Introduction Allowances are additional financial benefits given by employers to employees apart from their basic salary. While some allowances are fully taxable, others enjoy partial or complete exemption under the Income Tax Act, 1961. Understanding the taxability of various allowances is crucial for both employers and employees to ensure proper tax planning and compliance.… Read More »

How is HRA tax exemption calculated?

HRA Tax Exemption Calculation HRA tax exemption calculation: HRA, short for House Rent Allowance, is a salary component provided by employers to assist employees in covering their rental expenses. The exemption for House Rent Allowance (HRA) is determined by considering The following three factors: Actual HRA received from the employer. Rent paid by the employee… Read More »