Design Tax Efficient Salary Structure—Remuneration Planning

Course Content

I. Remuneration Planning & Tax Optimization:

Remuneration planning under different situations, including scenarios impacted by Budget 25-26 announcements.
Remuneration planning to minimize employees’ tax liability, incorporating new tax slabs and deductions introduced in the budget.
Restructuring of present remuneration plans considering current and future tax liabilities in light of the latest budget revisions.
Analyzing the impact of Budget 25-26 on various salary components and their tax implications.

II. Perquisites & Tax Implications:

Tax on different perquisites (rent-free/concessional accommodation, car, driver, education, domestic servant, interest-free/concessional loan, sweat equity shares, touring/traveling facility, gift, club facility, credit car facility, meal vouchers, refreshments, use/transfer of movable assets, medical facility, leave travel concession). Updated perquisite valuation rules as per Budget 25-26.
Tax-free privileges and how to maximize their utilization.
Tax planning devices: legally converting taxable perquisites into tax-free or concessional rate perquisites, considering the latest budget regulations.
Documentation is required for perquisites when calculating TDS.

III. TDS & Retirement Benefits:

TDS on Salary under Section 192, including updates related to Budget 25-26.
Obligation and estimation of employees’ salary under Section 192.
TDS and taxation of retirement benefits (gratuity, leave encashment, provident fund, pension, and voluntary retirement), incorporating any changes introduced in the budget.
Preparation of Form No. 16 in various situations (employee joining/leaving during the financial year, details of other incomes/losses, tax deducted by others). Updated Form 16 requirements, if any, as per the budget.
Documents related to deductions and other income for proper TDS computation.

IV. Tax Regimes & Incentives:

Guiding employees in selecting between the current and new Tax Regime, with a comparative analysis based on Budget 25-26 changes.
Tax incentives: Available and unavailable incentives, including any modifications or new incentives introduced in the budget.
Specific discussion on any new tax benefits or changes to existing benefits announced in Budget 25-26 impacting salary structures.

V. Cost to Company (CTC) & Salary Structure Design:

Designing competitive salary structures that are tax-efficient and aligned with the company’s compensation philosophy.
Cost to Company (CTC) breakdown and its components.
Balancing take-home pay with compliance and long-term benefits (PF, Gratuity), considering the impact of the latest budget.

VI. Budget 25-26 Impact Deep Dive:

Dedicated session summarizing and analyzing the critical aspects of Budget 25-26 relevant to salary structuring, tax planning, and employee compensation.
Discussion of specific budget proposals impacting perquisites, deductions, exemptions, and tax slabs.