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    Allowances at Various Organizations

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    Pramod P Nair
    This document provides information about various types of allowances paid by employers, including reasons for allowances and their tax treatment. It discusses fully taxable, partially exempt, and fully exempt allowances. Examples of different allowances are also provided. The document also includes brief summaries of several companies - HCL Infosystems, InMobi, the Indian Army, Paramount, Cyber Futuristics, and TCS. It outlines the types of allowances provided by these organizations to employees.

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    Allowances at Various Organizations

    Uploaded by

    Pramod P Nair
    203 views31 pages
    This document provides information about various types of allowances paid by employers, including reasons for allowances and their tax treatment. It discusses fully taxable, partially exempt, and fully exempt allowances. Examples of different allowances are also provided. The document also includes brief summaries of several companies - HCL Infosystems, InMobi, the Indian Army, Paramount, Cyber Futuristics, and TCS. It outlines the types of allowances provided by these organizations to employees.

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    Listed out few organizations that provide different types of allowances.

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    Allowances At Various Organizations

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    This document provides information about various types of allowances paid by employers, including reasons for allowances and their tax treatment. It discusses fully taxable, partially exempt, and fully exempt allowances. Examples of different allowances are also provided. The document also includes brief summaries of several companies - HCL Infosystems, InMobi, the Indian Army, Paramount, Cyber Futuristics, and TCS. It outlines the types of allowances provided by these organizations to employees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    203 views31 pages

    Allowances at Various Organizations

    Uploaded by

    Pramod P Nair
    This document provides information about various types of allowances paid by employers, including reasons for allowances and their tax treatment. It discusses fully taxable, partially exempt, and fully exempt allowances. Examples of different allowances are also provided. The document also includes brief summaries of several companies - HCL Infosystems, InMobi, the Indian Army, Paramount, Cyber Futuristics, and TCS. It outlines the types of allowances provided by these organizations to employees.

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    ALLOWANCES: VARIOUS

    TYPES, REASONS AND


    EFFECTS
    HCL INFOSYSTEMS, INMOBI,
    CYBERFUTURISTICS, INDIAN ARMY
    Presented By:
    Pramod P Nair (A-44)
    Harshit Shrotriy (A47)
    Amrita Pritam (A32)
    Shikha Dawar (A-34)
    Anisha Yadav (A-01)

    ALLOWANCES

    Fixed monetary amount paid by the employer to the employee


    (over and above basic salary) for meeting certain expenses.
    Generally taxable and included in gross salary.
    Three categories
    I. Fully taxable cash allowances
    II. Partially exempt cash allowances
    III. Fully exempt cash allowances

    FULLY TAXABLE ALLOWANCES


    Dearness Allowance
    Compensatory Allowance
    Tiffin / Lunch Allowance
    Overtime Allowance
    Fixed Medical Allowance
    Servant Allowance
    Other allowances

    PARTIALLY EXEMPT ALLOWANCES

    House Rent Allowance (H.R.A.)


    Special allowances

    FULLY EXEMPT ALLOWANCES


    cost of travel on transfer
    tour or journey in connection with transfer
    to meet the ordinary daily charges incurred on account of

    absence from his normal place of duty


    conveyance in performance of duties of an office
    expenditure incurred on a helper where such helper is
    engaged for the performance of the duties of an office

    INFOSYSTEMS

    HCL Infosystems: A Brief

    HCL Infosystems Ltd., a listed subsidiary of HCL, is an India-based


    hardware and systems integrator with a focus on emerging markets.

    HCL is a $ 6.2 billion global enterprise.

    It has a strong distribution network of 93,000 outlets in over 90,000


    towns in India.

    It is headquartered in Noida.

    HCL has a presence in 170 cities and 505 points of presence reaching
    4000 towns throughout India an operations in emerging markets
    including South Asia, Middle East & Africa.

    Employing- 7762 people.


    Vision Statement: Together we create the Enterprises of Tomorrow
    MISSION STATEMENT: To provide world-class Information Technology
    solutions and services in order to enable our customers to serve their
    customers better.

    Two Wheeler
    Scheme
    Two wheeler schemes applies to OJT & P0 grade employees in field engineer
    role, completing 3 months of services with HCL.
    The Organization shall enable field engineers to purchase a two wheeler for
    work related travel by providing:
    INR 10,000 interest free loan towards down-payment of loan on a 20 months
    recoverable basis.
    Reimbursement of expenses as per mileage claim entitlement.
    Transfer Policy :P
    Reimbursement of expenses incurred on packing, transportation, insurance and
    handling costs of household effects on actual, by the most cost-effective mode.
    Reimbursement of transportation expenses for a two-wheeler or a car
    Leave Travel Allowance
    ( LTA):
    LTA claim limit for employees in grade P3/ X3 & above (similar grades in other
    series) will be as per the Flexi Benefit Plan declaration made by self. For other
    grades; the claim limit will be as mentioned in the appointment/ appraisal letter.
    LTA could be claimed for travel within India for self & family. The employee must
    be part of the travelling group, in absence of whom the LTA cannot be claimed as;
    non taxable.
    Employee is required to avail leaves (including minimum 3 days of privileged

    Local Conveyance Policy

    This policy covers the reimbursement of expenses for any local travel made by the
    employee to meet official needs.

    Local office travel is restricted to 150 Kms or within municipal limits of the city.

    Reimbursement claims should be made by 18th of the same month or latest within 60 days
    of the actual expense incurred.

    Applicable Grade
    Level P2 & above

    Mode of transport
    4 Wheelers

    Reimbursement per km. (in INR)


    6.5

    All Levels

    2 Wheelers (Bikes)

    2.5

    (employee at any level may use a two wheeler)


    Grade/ Level
    P series level 7 & above

    Mode of Conveyance
    Public transport/ Auto/ Taxi

    P series level 4- 6
    Trainees/ X series/ M series/ P series level 0 - 3

    Taxi Type
    Medium segment car
    Small segment car

    Public transport/ Auto/ * Taxi

    NA

    Domestic Travel Policy:


    The policy details travel entitlements and allowances applicable for
    employees making
    domestic travel to meet work commitments.
    All original bills and receipts should be retained and attached along with
    the Travel Expense Voucher to claim the expenses

    InMobi: A Brief
    InMobi was founded in 2007 in India with offices in several
    countries.

    InMobi aims at redefining mobile first customer-engagement


    platform through its suite of products ranging from app
    distribution & monetization to brand advertisements.

    InMobi won a coveted spot in MIT Technology Review's 50


    most disruptive companies of 2013.

    Allowances
    1. House Rent Allowance: The least of the following amount
    is deductible from the HRA for computing income tax.

    1.
    2.
    3.

    HRA received
    Rent paid less 10% of salary (Basic)
    50% of salary (Basic) if the accommodation is situated at Mumbai,
    Kolkata, Chennai or Delhi.

    2. Transport Allowance: Conveyance is exempted

    up to

    Rs.800/- per month.


    3. Medical Allowance: Maximum of Rs.15,000/- is exempt
    from income tax.

    Allowances Continued.
    4. Leave Travel Assistance Reimbursement/Allowances:
    Actual travel fare incurred by an employee and his family to
    any place in India is exempt from tax.
    5. Telephone Allowance: Exempted if the telephone &
    internet has been used at home towards company use.
    6. Special Allowance: The balance amount will be special
    allowance which will be fully taxed.

    INDIAN ARMY: A Brief

    Formed in 15th August 1947.


    Size:

    13,25,000 Active Personnel.


    9,60,000 Reserve Personnel.
    158 Aircrafts.

    Part of Ministry of Defence- Indian Armed


    Forces.

    Headquarters at New Delhi.

    Chief of Army Staff- General Dalbir Singh


    Suhag

    Motto- Service Before Self.


    Commander-in-Chief of Army- The President of
    India.

    Allowances Paid
    to Officers
    NOTE: In the case of allowances
    specific to Defense Forces, the rates of
    theseallowance have been further
    enhanced by 25%
    asDearnessallowance has goneup by
    50%.
    Cost toCompany[CTC]:The CTC for
    a Lieutenant would
    beapproximatelyRs. 65000/- per
    month. This includes Basic Pay, DA,
    Grade Pay, Military ServicePay, Tech
    Pay, House Rent Allowance and
    Transport Allowance. These rates
    arenot statutory and are subject to
    change.

    Allowances
    To Whom Applicable
    Field Area Allowance Officers Posted to Field Area
    Officers Posted in High
    High Altitude/
    Attitude/Uncongenial
    Uncongenial
    Climate
    Climate Siachen
    Officers Posted in Siachen
    Officers Posted as Army
    Flying Pay
    Aviators
    Officers Posted in Active
    Parachute Pay
    Parachute BNs/Regt
    Special Forces
    Officers posted in Special
    Allowance
    Forces
    Transport Allowance

    Officers Posted in
    Peace Stations

    House Rent
    Allowance

    To officers not provided


    Govt. Accommodation

    Kit Maintenance
    Allowance

    All officers

    Uniform Allowance
    (Outfit Allowance)

    All officers

    Qualification Pay/
    Grant for Service

    All officers undergoing


    specified courses (One Time)

    Rates
    Rs. 4,200 PM
    Rs. 11,200
    Rs.14,000 PM
    Rs. 9,000 PM
    Rs. 1,200 PM
    Rs. 9,000 PM
    Rs. 3,200 + DA PM
    in A1/A cities and
    Rs 1600+DA PM at
    other places
    10-30% of Basic Pay
    (Pay Band + Grade
    Pay + MSP)
    Rs. 400 PM
    Initial Rs. 14,000
    and
    Rs. 3000 every
    Three Years
    Rs. 6,000 to 20,000

    PARAMOUNT: A
    Brief

    Established in 1977

    Has a turnover of over 100 cr.

    leading manufacturer of Paramount Expanded


    Cellular Polyethylene Foam, Sheets, Hoses, Rods and
    Air Bubble Film rolls .

    Head office in new Delhi and manufacturing units in


    sonipat

    ALLOWANCES
    Overtime allowances
    Fixed medical allowances
    Tiffin / Lunch Allowance
    City Compensatory Allowance
    Other allowances

    CYBER FUTURISTICS: A
    BRIEF
    Founded in the year 2000

    Indias leading provider of Data Center solutions and managed outsourcing


    services,
    encompassing several business verticals and niche markets.
    vision : providing world class data center solutions and managed outsourcing
    services for
    esteemed customers from all over the world.
    SERVICES PROVIDED:
    Data Center Solutions: Powerful Web hosting solutions and services.
    Managed Outsourcing services: World class Technical Support and business
    process outsourcing services delivered via their own 500+ seater IT and business
    hub. Inbound captive unit covering the US market.
    Cloud storage solutions: Deliver performance oriented, smart cloud computing
    services to boost organizations. There is new product launched called the Data

    ALLOWANCES
    HRA : given to all the levels of the employees i.e from M0 to M6
    There are three ways in which HRA is calculated :
    Actual house rent allowance received from your employer
    Actual house rent paid by you minus 10% of your basic salary
    50% of your basic salary if you live in a metro or 40% of your basic salary if you
    live in a non-metro
    Conveyence allowance : 800 to all the grade employees
    Medical allowances : 1250 to all the grade employees
    Child education and hostel fee : 1000 to all level employees
    Special allowance : depending upon the working conditions of the employees
    Flexi-basket : given to only M4, M5, M6 level employees (depends on the target)

    About TCS
    Industry
    Founded
    Founder(s)
    Headquarters
    Key people

    IT services , IT consulting
    1968
    J R D Tata
    Mumbai, Maharashtra, India
    Ratan Tata (Chairman)

    Revenue
    Profit
    Employees

    N. Chandrasekaran
    (CEO & MD)
    US$ 10.17 billion (2011/12)
    US$ 2.2 billion (2011/12)
    254,076 (Sep 2012)

    TCS is one of the largestprivate sectoremployers in India,and

    the second-largest employer among listed Indian companies


    (afterCoal India Limited).
    In the 2011/12 fiscal year TCS recruited a total of 70,400 new
    staff, of whom 61,055 were based in India and 9,345 were
    based in the rest of the world.In the same period a total of
    30,431 staff left employment with TCS, leaving a net increase of
    39,969, of whom 36,232 were based in India and 3,737 in the
    rest of the world.
    TCS has announced plans to recruit 60,000 graduates in the
    2012/13 fiscal year.

    EVA compensation model for TCS


    TCS adopted EVA aimed at creating economic value by
    concentrating on long term continuous improvement.

    This model measured operating and financial performance of the


    organization.

    Basis for giving compensation to employees.


    To assess employees contribution, at the company.
    Component of fixed and variable pay were determined
    Fixed Pay- wages, pension.
    Variable Pay- bonus, profit sharing and stock options.

    TATA CONSULTANCY SERVICES


    SALARY INFORMATION
    Component category
    basic

    Annual in INR
    1,26,000

    Variable allowance

    93,600

    Special allowance

    87,600

    Bouquet of benefits

    95,880

    Gross salary
    Annual components/
    Retrials
    Health insurance
    Provident fund
    Gratuity
    Total of annual
    components
    Total gross

    4,03,080
    Annual
    1,400
    15,120
    6,061
    22,581
    4,25,661

    TCS defined structure of BoB


    Components
    House rent allowance

    Annual in INR
    50,400

    Conveyance allowance

    9,600

    Leave travel assistance

    10,500

    Sundry medical reimbursement

    3,000

    Food coupons

    6,000

    Personal allowance

    16,380

    Gross bouquet of benefits

    95,880

    Summary of
    Allowances

    Company
    /
    Allowanc
    es

    DA HRA Transpo Trave


    rtation
    l

    HCL
    Infosyste
    ms

    InMobi

    Indian
    Army
    Paramoun
    t

    Cyber
    Futuristics
    TCS

    Medic
    al

    Relocati
    on

    Mobil
    e

    Unifor
    m/
    Dress

    Region
    al

    Educati
    on

    Servi
    ce

    Speci
    al

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