Hi all, We are a small startup with 3 employees. We don't have a dedicated HR, and we end up doing many things on our own. We are revising the pay of our employees to 2.88 LPA.
Deduction components in the payslip
What are the deduction components in the payslip? We understand we should deduct Professional Tax (TN), which is Rs. 200 per month. We don't have PF as we are too small. Is this amount taxable, and what component does it fall under?
Please advise on the salary slip format for this. Waiting for your kind help in this regard.
Thanks in advance.
Regards, Swarna
From India, Coimbatore
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Deduction components in the payslip
What are the deduction components in the payslip? We understand we should deduct Professional Tax (TN), which is Rs. 200 per month. We don't have PF as we are too small. Is this amount taxable, and what component does it fall under?
Please advise on the salary slip format for this. Waiting for your kind help in this regard.
Thanks in advance.
Regards, Swarna
From India, Coimbatore
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Hi Swarna,
As per your request, there is a deduction of EPF, ESI, and PT on a monthly basis. For these, you have to register with the EPF (PF Regional Office), ESI (Regional Office), and PT (Coimbatore) corporation. Only then can you deduct from employees and pay to the respective department. The deductions are exempt from Income Tax under section 10.
Regards, Prakash G [Phone Number Removed For Privacy-Reasons]
From India, Chennai
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1As per your request, there is a deduction of EPF, ESI, and PT on a monthly basis. For these, you have to register with the EPF (PF Regional Office), ESI (Regional Office), and PT (Coimbatore) corporation. Only then can you deduct from employees and pay to the respective department. The deductions are exempt from Income Tax under section 10.
Regards, Prakash G [Phone Number Removed For Privacy-Reasons]
From India, Chennai
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Hi Swarna,
EPF and ESI Applicability
EPF is applicable only if you have 20 or more headcount, including contractual workmen. ESI is applicable when the count is 10 or above.
Professional Tax (PT) Deduction
Yes, PT needs to be deducted and remitted to the local municipal authorities. The amount is not Rs. 200. In Tamil Nadu, there are 5 slabs, and it is paid on a half-yearly basis, i.e., in March and September. Additionally, registration is required for this.
Income Tax Applicability
If the salary is around 2.88 LPA, then Income Tax is not applicable as it is below the threshold limit.
From India, Bangalore
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EPF and ESI Applicability
EPF is applicable only if you have 20 or more headcount, including contractual workmen. ESI is applicable when the count is 10 or above.
Professional Tax (PT) Deduction
Yes, PT needs to be deducted and remitted to the local municipal authorities. The amount is not Rs. 200. In Tamil Nadu, there are 5 slabs, and it is paid on a half-yearly basis, i.e., in March and September. Additionally, registration is required for this.
Income Tax Applicability
If the salary is around 2.88 LPA, then Income Tax is not applicable as it is below the threshold limit.
From India, Bangalore
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Payslip.xls