Hi Friends,
Pls help me to segregate salary to different headings. I u/stood normally
the earnings will be divided into
Basic pay, DA, HRA, TA, EA, Food Allowance, Washing Allowance
Could you pls any one explain me how to arrive the amount on each headings? is there any norms to calculate each headings (maximum applicable amount) from gross salary?
Kindly advise.
Regards,
Ramesh kannan
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From India, Coimbatore
Pls help me to segregate salary to different headings. I u/stood normally
the earnings will be divided into
Basic pay, DA, HRA, TA, EA, Food Allowance, Washing Allowance
Could you pls any one explain me how to arrive the amount on each headings? is there any norms to calculate each headings (maximum applicable amount) from gross salary?
Kindly advise.
Regards,
Ramesh kannan
[/code][/quote]
From India, Coimbatore
After the fringe benefit tax being levied... I don't think that all this headings matter. As all these headings were used to reduce the tax on the employee.. But as the tax now has to be paid on all the said items... it is no longer essential to segregate the salary
But you can give them food coupons or subsidised canteen facilities which are not taxed...
If you still want to have the list check this link started by CHR
<link no longer exists - removed>
From India, Ahmadabad
35But you can give them food coupons or subsidised canteen facilities which are not taxed...
If you still want to have the list check this link started by CHR
<link no longer exists - removed>
From India, Ahmadabad
Thanks for yr reply.
My employee & employer feels uncomfortable for paying huge PF since we pay for total salary. If we segregate them we could only pay for basic pay + da, am i right?. Eventhough for an employee drawing salary around Rs. 6500/- for him we show hra, ta, ea - these allowances are taxable?
Regards,
Ramesh kannan G
From India, Coimbatore
My employee & employer feels uncomfortable for paying huge PF since we pay for total salary. If we segregate them we could only pay for basic pay + da, am i right?. Eventhough for an employee drawing salary around Rs. 6500/- for him we show hra, ta, ea - these allowances are taxable?
Regards,
Ramesh kannan G
From India, Coimbatore
PF is normally paid only on
Basic+DA
so the lower you keep the Basic + DA, the lower you will have to contribute to the PF.
You can segregate the other heads with Food Coupons (Upto Rs.1100) & Travelling allowance (As in current Budget travelling allowance is taxed less under FBT). But while you design your salary heads keep in mind the tax liability (i.e. FBT on company or IT on individual) It should be a perfect mix so that total Tax liability is less.. and still acceptable to your employee
From India, Ahmadabad
Basic+DA
so the lower you keep the Basic + DA, the lower you will have to contribute to the PF.
You can segregate the other heads with Food Coupons (Upto Rs.1100) & Travelling allowance (As in current Budget travelling allowance is taxed less under FBT). But while you design your salary heads keep in mind the tax liability (i.e. FBT on company or IT on individual) It should be a perfect mix so that total Tax liability is less.. and still acceptable to your employee
From India, Ahmadabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls