I am new, so bear with me.
1) Let's say a person earns Rs 30000 gross salary per month (including HRA, medical allowance, etc.), so when preparing his monthly payslip, do I deduct Rs. 250 (income tax) from his salary of Rs.30000? 10% income tax for those earning Rs. 30000 per month (or 3.6 lacs per year), so Rs.3000 per year for this person, which would amount to Rs.250 per month. Is this the way it is done, or is it only done yearly? I am asking because I need it ONLY FOR MONTHLY PAYSLIP. Is this deduction okay, that is, subtracting Rs. 250 from Rs. 30000 equaling Rs. 29750.
2) Profession Tax in chennai - what is it, and how to calculate/deduct? Is it mandatory?
3) Anything else mandatory? The company has less than 20 employees, so I don;t need PF or ESI, but is there anything else mandatory?
Please help regarding this.
Thanks. 29th November 2013 From India, Chennai