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