Provident Fund is to be deducted and contributed on Basic salary and Dearness Allowances only. ESI is to be taken on gross salary including Basic, DA, HRA, Conveyance and other allowances which are paid in an interval of not more than two months. That is to say, if you have the practice of paying incentives/ bonus on a monthly basis, that should also be taken as salary for ESI purpose. That means only reimbursements like travelling expenses, LTA are exempt from ESI.
For Profession Tax also total income received by an employee by whatever means like salary, bonus etc,during the half year will qualify.
I didn't get what are Live and FNF employees.
Thanks for information.......
Live employees means currently working and FNF (Full and Final Settlement) means Quit employees.
I would like to know Whether Leave encashment calculated on Basic salary will be consider for PF, PT and ESIC deduction for Live and Quit employees salary paid.
For leave encashment PF and ESI are not required to be deducted. While making F&F, PF and ESI till the date of working shall be deducted from the salary (till date of settlement) As far as Profession Tax is concerned, you must have a record of it and if you have not deducted PT on a monthly basis, deduct the PT in full according to the slab when Full and Final Settlement is made.
Do PT gets deducted while calculating F-n-F?
The question is because say eg :- if employee leave on 19-Aug-10 & joines another company on 20-Aug-10, then other company will definately deduct PT. But current company from which he has resigned do not know whether he is going to join other company or not, so during F-n-F shall employer deduct PT???
& if PT gets deducted during F-n-F then why the individual suffer deduction of PT twice in same month............
Plz clear the doubt.................. :)
PT due on salary paid by first company till date of his leaving will have to be deducted and paid by the first company and that portion of salary paid by the second company, if it falls within the taxable brackets, should only be paid by the second company. Here the first company need not worry about his earnings after he left the establishment and in the similar way, the second company need not go in depth about whether the first company had deducted the PT or not.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> basic salary employee leave final settlement full and final settlement leave encashment Location-India-Mumbai pf and esi pf and esic pf deduction profession tax provident fund travelling expenses Complete List Of Categories
Interesting Relevant Discussions