No Tags Found!

sunduhr
1

Dear All
I work for a small IT Company. Though i got a general idea about the Pay roll process, like to learn indepth about the Pay roll process. I felt rather than reading a book, getting info from all you experienced people will be more useful to me and people who read this.
So, kindly help me with important info about Pay roll Process.
Also, the Salary Break up. When you consider Annual CTC, how much to consider for Basic, HRA, Medical, Travel, LTA etc...along with the limit of Tax exemption.
What about Food Allowance?
Hope to hear from you guys...
Regards
Sundu

From India, Bangalore
Anu_B
2

Hi Sundu,
You can go in to the archives of Cite HR for reply, there has been many discussions on this topic here.
Generally it goes like this:
CTC comprise of all these componenets:
Basic - 30 % or 40 %
HRA - 50 % of Basic
Medical - 1250 per month /15,000 per annum
Transport Allowance - 9600 per annum
PF contribution by employer - 12% of the basic
Special allowance - the balancing figure
Best Regards'
Anu

From India, Hyderabad
sujata1jan
3

Hi Anu I want to ask the same thing sundu ask. Please let me know how to get it. Regards Sujata
From India, Faridabad
Pashupati Singh
Dear Sandu,
Anu is very true about the bifercation, however I will say, actually there is no hard and fast rule for break ups, only thing is you have to follow the minimum wages act, about the bifercation of CTC, it again depends on the kind of amount your company is offering, if its anything more than 35k/month for anyone, I will suggest try to put some reimbersments as well the part of the salary to provide IT benefits to the employees, like telephone reimbursment, petrol reim, driver reim, car reim, etc.
As far as employers contribution is concerned, it will be 12% of basic as PF, 15 days basic salary per year as Graduty.
Regards,
Pashupati Singh


sujata1jan
3

Hi Pashupati Cud you please let me know wht is difference between allowance and reimbursement and what is the limit for each. Regards Sujata
From India, Faridabad
sujata1jan
3

Hi Would like to know how to deduct tax on Salary. Would also like to know how to calculate net salary after PF and tax. If somebody can help me out. Regards Sujata
From India, Faridabad
Anu_B
2

Sujata,
Just take care, that in case of reimbursement, you need to inform the employees that for taking tax exemetions, they need to submit the original vouchers for the same.
Like for example:
For Medical reimbursement, ay you have given a head for Rs/- 15,000 p.annum ( as per tax law, up to Rs. 15000/- is exempt from Tax ), an employee needs to submit original supporting like, medical bills, doctor fee receipts to claim exemption otherwise it is treated as taxable.
Best Regards'
Anu

From India, Hyderabad
Abdul Shameer K A
Hii, I am not sure but i Think allowance is a fixed amont will be given with salary, and the reimbursement will given on produce of bills for the usage of facility upto a limit Regards Sameer

sujata1jan
3

Hi Anu
Thanks for the update. Is sameer right regarding reimbursement and allowance? Secondly,
Would also like to know how to calculate net salary after PF and tax? If you could just help me out?
Regards
Sujata

From India, Faridabad
Pashupati Singh
Dear All,
Anu is very clear about this however just to make this simpler, Allowance and reimbersment don`t have much diiffrence as far as the salary bifercation is concerned, yes the difference comes into picture while calculating the IT, If someone has got any reimbursment as the part of salary, he/she by producing the bills can claim it as non-taxable income, however the employer should provide this facility to the employees because if the employer provides this reimbusrsment facility to the employees, employer needs to pay FBT to the government in lieu of that.
Still many employer provides this facility as the FBT is far lower than the IT rates.
If anyone requires any further clarification, kindly feel free to give me a call on 09810975857.
Regards,
Pashupati Singh


Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.