Hi,
Have been seeing this forum since last 3 days and have got so much information that I never thought was required or of help. Thanks for the community of internet helping people.
I want the format of salary breakup that I can device for employees of company. According the instructions given to me I have to have the following components: Basic, HRA, LTA, Allowance for phone, Allowance for Internet, Medical, Conveyance and DA and if it is not required then we do not want PF.
I am very new to all this and do not understand anything whatsoever. Can someone please help me out on the following queries:

1. Break up for salaries around 96000 per annum.
2. Is anything to be deducted from companies side with this salary.
3. The company has a leave policy under which leave encashment is also provided (should that be included in the total salary).
4. Is PF Deduction compulsory for companies.
5. If yes how much should be deducted and is there any condition for its reimbursement once the employee leaves.
6. We want to device the structure such that if the salaries of employees is increased and they come under tax brackets they are not burdened a lot and we are not required to change our structures.
7. Any tax to be paid from the employer or the employee side on this structure?

I am sorry for too many questions to be asked but I want this to be fixed very very urgently. It would be great if someone could help me design the salary slip accordingly.

1. Rs. 96000/- pa comes to Rs. 8000/- pm.

2. If you want his PF to be deducted than you can keep his salary to minimum of 60% of gross salary, else you should keep his salary more than Rs. 6500/- as above Rs. 6500/- basic you need not to pay PF provided you fill in the form no 11.

3. Rest of the amount you can divide in the other heads of salary but keeping in mind the taxable impact of such allowances.

4. You can not add amount for Leave Encashment in his total package as it is not certain how much leaves would be balance at that time. However you can make a provision for that.

5. on Rs. 96000/- there would not be any tax implication.

I think that your doubts would be cleared to some extent.

Thanks
Anjali