How do we calculate professional tax,ESI,PF,TDS - basic pay
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How do we calculate professional tax,ESI,PF,TDS

ramyaraghu11 Started The Discussion:

kindly help me how to calculate the TDS,PF,ESI,professional tax whether on gross salary or net salary what will be the slabs percentage for TDS,PF,ESI,professional tax from from salary o to 10 LPA.

kindly help me how to calculate the TDS,PF,ESI,professional tax whether on gross salary or net salary what will be the slabs percentage for TDS,PF,ESI,professional tax from from salary o to 10 LPA.

Amitmhrm - Contributing Member
Hi,

ESI is applicable only for those employees whose gross salary is up to 10,000/- rupees per month and its calculated @ 1.75% of gross salary from employee side and 4.75% of the same from employer's side.

PF is calculated on basic salary+Dearness allowance only.. It is calculated @ 12% of basic salary from both the sides.. Out of 12% of employer's contribution only 3.67% goes to PF and rest goes to Pension Fund. The maximum ceiling to be covered under this Act is 6500/- basic salary.. even employees getting more can also be included.

Professional Tax is calculated on gross per month and its fixed for a level.. Like for employees who are getting upto 6000/-, deduction would be 20/- rupees.. but its vary from state to state..

Regards,

Amit Seth.

rachana karera - Contributing Member
Hello,

I have one more query in this regard
As mentioned that ESI is applicable upto gross salary of Rs 10,000, so wnated to know that whether employees earnings more that that are not to be included in ESI.

Thanks
Rachana

harshu1112 - Contributing Member
Hi , According to my knowledge it is calculated as ESI - 1.75% (applicable only less than/equal to 10000/- salaried employees) Thank You ..

Hi all


Based on below details ESIC to be deducted, Drawing wage upto 10000


To be deemed as wages


Basic pay
Dearness allowance
House rent allowance
City compensatory allowance
Overtime wages (but not to be taken into account for determining the coverage of an employee)
Payment for day of rest
Production incentive
Bonus other than statutory bonus
Night shift allowance
Heat, Gas & Dust allowance
Payment for unsubstituted holidays

Regards
Subrahmanyam

singhalanu - Contributing Member
Dear Rachna ESI contribution is applicable only for a salary upto Rs.10,000/- , if salary is greater than Rs. 10,000/-. no ESI deduction is done. Regards Anu

rachana karera - Contributing Member
Dear Anu,

As you said that we cannot deduct ESI if salary is more than Rs 10,000, but i found with one of the leading pharma company where the gross was Rs 11,000 and ESI was deducted.
What can be done in this matter, is that valid.???



Thanks
Rachana

sarita thakur - Contributing Member
To be deemed as wages


Basic pay
Dearness allowance
House rent allowance
City compensatory allowance
Overtime wages (but not to be taken into account for determining the coverage of an employee)
Payment for day of rest
Production incentive
Bonus other than statutory bonus
Night shift allowance
Heat, Gas & Dust allowance
Payment for unsubstituted holidays
Meal/food allowance
Suspension allowance
Lay off compensation
Children education allowance (not being reimbursement for actual tuition fee)
we consider all this while calculating ESI so go through it and find out how this 11000rs come what are things included in this

rachana karera - Contributing Member
the things included in Rs 11000 were Basic salary Conveyance HRA bonus Interim bonus company allowance thanks rachana

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