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i want some help regarding the salary structure
i want to know for the CTC of 387000 what will be the TDS or the incometax that the company will deduct and will apear in the salary slip assuming that the full investment of Rs 1 lakh and other investments is made by the employee.
how will the employer and employee PF appear on the salary slip
if you can show me the breakup of this structure on the actual salary slip format,with the deducations it would be great
mail me at
Thanks
Teena

From India, Indore
hi teena!!!
this is reg ur query about salary structure. you want to know about the breakup of 387000... so pls follow the below calculation for TDS
Gross salary = 387000
1) less: hr = Least of the following amount is exempt
1. HRA Paid by Employer
2. 50% of Basic Salary
3. House Rent Paid by Employee - less 10% of Basic Salary
2) less: conveyance (max 9600 per annum)
3) less: PF,LIC, repayment of home loan and tuition fees etc. upto 1 lac as per Chapter VI & sec80c
the balance will be bifurcated as per the slab for men & women under or above 65yrs of age and after all the deductions, you can calculate ur tds per month by dividing the same by 12
I hope the above is clear... any doubt pls revert
salim


Hi salim,
Thankyou i appreciate ur efforts ,but it is still not clear as to what will be the tds or tax,if u can explain me with the help of an actual breakup of the salary in the salary slip it would be great.

From India, Indore
Dear Teena

to calculate TDS on Salary one must know the structure of salary as

Basic

HRA

Conv.Allow.

Washing Allow.

Medical Allow.

Special Allow.

At the same time, some company pay Conv. Reimb. instead of Conv. Allow., similarly Medical Reimb.(Max 15000.00 per annum) Instead of Medicla Allow., LTA. (Taxable 2 times in a block of 4 years).

under Income tax Act, Age and Sex is important for income tax deduction.

Normal exemption to be taken in to consideration.

1. Transportation Allow. (Conv. Allow.) Rs. 800 per month.

2. Exemption u/s 80 C (PF, VPF, PPF, LIC, Mutual Fund, Pension Scheme, NSC, Childeren tution fee, Investment in Bonds, House Loan Principal) Maximum limit is 1 Lac only.

3. u/s 80D Mediclaim Insurance Rs. 15000.00

4. U/s 80G 80GG Donation 100% if for child edu. prog. else 50%.

In the mean while house loan interest paid will be deducted from income directly.

5. HRA as per rule admissble. (Actual, Amount of HRA, Paid - 10% of basic).

Hope it will give you a basic concept of Income tax on salary.

rest is depend upon your company salary structure and individual tax management. you are suppose to ask the employees to furnish the income tax decalarion for deduction of their income tax from salary.

Thanks

Mohd. Arif Khan


Hi,
I would recommend if you can go through Income tax Book by VK Singhania and in that book splly Income tax from Salary Head. It will give you a clear picture about your query for calculating very component and TDS too. Moreover if you go through any office diary 2007 you can find slabs for men and women and for retitred person.
I will give the salary slab structure , it changes every year from 31 march to 1 april . So financial yaer starts from april2007-march2008.
Gauri

From India, Delhi
Dear sir, the structure is realy heplful. but i m not understanding y there r TWO consective colomns for PF deductions? Kindly rly. Regrds, Yogendra.
From India, Pune
we have to split salary as basic 60% and remaining things coming under 40% i need clarification
From India, Pondicherry
Can we have a structure indicating the amounts payable by voucher also? Specially for top management like the VPs and Directors? Ramesh
From India, Madras
Hi,
While there is general information on CTC, I am specifically interested to have a right formula/working for Positions such as Vice presidents, Directors and general managers. If available on a spreadsheet will be welcome
Regards
Ramesh

From India, Madras
Hi,
In pay slip, employee PF merely will be show in deduction part.
Employer PF contribution uses only for CTC calculation becoz that part will be reeceived by the employee when he/she quiet from the company.
rgds

From India, Mumbai
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