CTC OPTIMIZER CALCULATOR

Note:
1. Certain company specific heads viz. Company's contribution to Gratuity Fund, etc. have not been included for the sake of simplicity
2. It has been assumed that FBT is not paid on various perquisites.
3. LTA can be claimed as tax-exempted twice in a block of four years. Under IT law, there is no higher limit on the amount that can be claimed as tax-exempt under LTA. Companies however usually have some higher limit for LTA.
4. Lunch Coupons are tax exempt only if they are not paid in cash.
5. Reimbursements for Car are tax exempt only if they are for office purpose.
6. For the sake of simplicity, the calculator assumes certain values as follows:
A. Supplementary Allowance is 5% of CTC
B. Coneyance Reimbursement: Rs. 800 per month
C. Lunch Coupons worth Rs. 1,300 are given per month
D. Medical Reimbursment of Rs. 15,000 per annum
E. Car and Telephone Reimbursement of Rs. 3000 per month(for CTC between Rs. 5 lacs and 10 lacs) and Rs. 8000 per month(for CTC more than Rs. 10 lacs).
7. Various allowances will vary depending on actual expenses and companies can have limits to the amount which can be paid under these heads.