Hr Executive
Calcutta University
Dgm-hr , Rajhans Group.
J.Gopi Krishna
Agm Hr & Ir
+2 Others

I work in a very small company and paid Rs.5000 p.m. lumpsum cash.
My salary is not broken into Basic, DA, HRA, CA, etc.
Also, TDS, EPF, PT are not applicable in my case due to amount of salary and number of employees.
Can someone please tell me how to show my salary breakup in the 'salary certificate' and 'salary payslip' and what things to mention?
5th April 2012 From India, Mumbai
But can you advise me some breakup? If I show 'consolidated', it will look suspicious I think. Can there be allowances if salary is paid by cash?
5th April 2012 From India, Mumbai
You haven't said how many people work in your company? You saying 5k salary, but y not entitled to pf?
Anyways If you want to break the salary, take 50% of 5000 as Basic, 40-50% as HRA, 800 - conveyance, etc.
but its quite confusing , as u said no such deductions are done contribution either..
5th April 2012 From India, Calcutta
5 people, small CA firm, no EPF policy because of that...
The figures you mentioned come to:
Basic-2500 (50% of 5000 because I'm from metro city?)
HRA-1000 (40% of Basic)
Adds up to 4300, what about the rest?
Also, if I want a similar structure for Rs.4500/- and Rs.4800/-, can you suggest for that as well? Thanks a lot.
P.S. You're sure there are allowances if salary is paid in cash though right?
5th April 2012 From India, Mumbai
Salary Certificate
Mr xxxxx is working with us as a “Post name”, placed at “City Name” with a CTC of Rs 60,000/- These are the CTC details.
Head Particular Annual Package Monthly Package
Basic 24000 2000
HRA 18000 1500
Special Allowance (Attire Allowance) 2400 200
Conveyance Allowance 3600 300
Medical Allowance 3600 300
Petrol Allowance 6000 500
Additional Allowance 2400 200
Gross Salary Before Deductions 60000 5000
Deduction - TDS and Loan Arrears 4800 400
Gross Salary After Deductions 55200 4600
With Regards,
Authorised Signatory
Company Name
6th April 2012 From India, Bangalore
Hi Vikram, thanks a lot. But there is no TDS because my salary is below taxable slab. How did you put TDS then? Also, can I make monthly salary slip with these details you provided instead of salary certificate?
6th April 2012 From India, Mumbai
Exclude the TDS part , But however you can prepare the salary slips on this format. This is ussually used by start up companies. However You say you work in a CA's office, Just be sure because new rules state that even a company with just 1 employee needs to enlist under epf and esi and deductions have to be made
6th April 2012 From India, Bangalore
Are you sure? I thought the rule for EPF is minimum 10 employees...mine has only you have any link about this new rule?
Also, can I omit some allowances from your list like medical?
Thank you so much.
6th April 2012 From India, Mumbai
Google the rule about EPF and ESI. And also YES you can take our some points like medical, but ussually medical benifits are found on every company’s payslip — -Vikram
6th April 2012 From India, Bangalore
Oh okay, because I read somewhere that medical allowance has some other complicated rule, so I just felt like omitting it.

By the way, check this site: EPFO <link updated to site home>

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

- Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. (List of Industries/Establishments)

- Employing 20 or more persons .

- Cinema Theatres employing 5 or more persons.

For employers,

- Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.

And for ESI: ESIC-Chinta Se Mukti <link updated to site home> ( Search On Cite | Search On Google )

Coverage under the ESI Act,1948


Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
6th April 2012 From India, Mumbai
your breakup for 5000 salary basic 2000(40% of gross) HRA 1000(50% as you are in metro) conv 800 special allowance 960 decuction PF 240 total 5000 correct me if i am wrong
7th April 2012 From India, Delhi
Hi imok, can you explain why you put PF deduction? My firm has 5 people and therefore, no PF .. right?
7th April 2012 From India, Mumbai
pf is applicable
1. If your Basic plus DA is 6500 or less
2. If your age less than 58 years
7th April 2012 From India, Delhi
pf and epf is same right? no compulsion for epf for less than 10 employees according to this site: EPFO
7th April 2012 From India, Mumbai
may be you are right there is no compulsion, but it is required for employees future security, anyways you can use following breakup, just increase amount in spcl alwnc, or if you want to show deduction put that pf amount in insurance deduction
7th April 2012 From India, Delhi
First of all, you have to see whether you are getting minimum wages as per your designation. You have to see the minimum wages GO and accordingly you have to mention basic plus DA as the per the gezette and remaining if you have any balance of amount that can be kept in some other heads.
Suppose you say minimuw wage is 3800 and DA 800
In your case Basic 3800
DA 800
conveyance 400.
However, i do not hope that you are not getting minimum wages. Now a days minimum wages are almost higher side of Rs.5000/-
7th April 2012 From India, Mumbai
EPF attracts on employees goes 20 or more on any month preceding 12 months.
You may follow list given by Vikram, you have to deduct PT - Professional Tax, check out the slab with your CA. and mention in salary slip this deduction.
7th April 2012 From India, Surat
But professional tax is applicable for monthly salary of 5001 and higher.
So there is no EPF, no PTax and no TDS.
So can 'deductions' in salary slip look like this:
Or does it look weird?
7th April 2012 From India, Mumbai
make sure your are not getting lower than minimum wages, but deduction can be done for insurance.
7th April 2012 From India, Delhi
Hi again imok, Can you explain the insurance deduction? What steps do I have to take for that?
7th April 2012 From India, Mumbai
well as a part of organizational policies, orgz buys insurance for their employees with employee's consent they usually deduct 200-1000, depending on salary/policy, there is no particular rules regarding this, as per my knowledge. it varies orgz to orgz
correct me if i am wrong
7th April 2012 From India, Delhi
Oh okay, but then I have to show that deduction in my ITR also right? I don't think my employer would start an insurance policy specifically for me. Plus in my last year's ITR, I have shown no deductions under Chap 6a.. so then?
Is it okay to just show deductions as 0 like this..
and attach a covering letter to immigration stating the laws applicable for these deductions?
7th April 2012 From India, Mumbai
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™