There is no one-size-fits-all kind of ideal salary structure. It all depends on your needs and financial situation. Money Today shows you how people at different income levels and age profiles should restructure their pay packages.
Choose your FBT
The government levies a 30% tax plus cess on the fringe benefits extended to you by your company. But it is levied only on a part of the value of fringe benefits. Your company won’t tell you this, but it often adds the FBT paid on your benefits to your CTC. The value to be taxed can vary, so choose your benefits carefully:
NO FBT: Education allowance; LTA; medical reimbursement; transport allowance (up to Rs 800); newspapers & books
LOW FBT: Travelling and tour allowance; conveyance; telephone; entertainment; car (all 20% of value)
HIGH FBT: Club membership (50% of value)
Have questions regarding your salary structure? Write to us at letters.moneytoday@ intoday.com