Doubts Reg. Income Tax And Pf Of Our Employee - XLS Download

Hi Guys,
I recantly started a Pvt Ltd(totally 6 employees-software company).
We currently do not have a HR admin within the company since its quite small.Company employees salary is below income tax limit.Company's turn over is also below income tax limit.
We have recruited one senior software engineer.His salary is fifty thousands per month(6 lakhs per annum).He is joining from new year.
can u guys pls suggest me regarding following doubts ?.
1.Even though newly recruited employee's salary is above income tax limit,
Since total employees are less than 20,I think no PF can be deducted from that newly recruited employee's salary.
Am I correct ?.
2. Should I deduct and pay income tax from his salary to IT department on monthly basis or end of March-2009 ?.
3. Can you guys please help me by providing salary slip format for a Senior Software Engineer earning Rs 50,000 per month?.
Thanks
Devi

Reply:

1.Even though newly recruited employee's salary is above income tax limit, Since total employees are less than 20,I think no PF can be deducted from that newly recruited employee's salary.
Am I correct ?.

Yes, no requirement to deduct the PF.

2. Should I deduct and pay income tax from his salary to IT department on monthly basis or end of March-2009 ?.

Ask him to submit the form 16 from his previous employer to recalculate the Gross Total Income and also ask for the investment planning till 31.03.09. A declaration form shall be filled and submitted by him to you.
Finally, take account his investments and projected salary upto 31.03.09 and calculate the income tax liability. Deduct the TDS over his salary and deposited by the company. You have to file eTDS Return and end of the FY 2008-09, issue the Form 16 to him before 30.04.09.

3. Can you guys please help me by providing salary slip format for a Senior Software Engineer earning Rs 50,000 per month?.

Yes, Please review and make a plan for the % of each component of salary.

Hi Devi,
As mentioned by Jain its correct that no need to deduct PF from salary,and he has to submit the form 16 for the year 2009.
Warmest Regards,
Mohan.M.S

Hi Devi,
Please herewith find the attached file of Salary Slip.
Warmest Regards,
Mohan.M.S

1.Even though newly recruited employee's salary is above income tax limit, Since total employees are less than 20,I think no PF can be deducted from that newly recruited employee's salary.
Am I correct ?.

Once the employees exceed 10 you need to deduct PF as per the latest law
in your case, no requirement to deduct the PF.

2. Should I deduct and pay income tax from his salary to IT department on monthly basis or end of March-2009 ?.

Ask your employee to submit the form 16 from his previous employer to recalculate the Gross Total Income(based on form 16 and 3 months salary your going to make the payment) after considering allowances and investment planning till 31.03.09 if any, A declaration form shall be filled and submitted by him to you.
Finally, take account his investments and projected salary upto 31.03.09 and calculate the income tax liability. Deduct the TDS over his salary and deposited by the company. You have to file eTDS Return and end of the FY 2008-09, issue the Form 16 to him before 30.04.09.

3. Can you guys please help me by providing salary slip format for a Senior Software Engineer earning Rs 50,000 per month?.

Generally 30% basic on gross and 40% HRA on basic and the rest is other allowances as per the applicable law

Hi Devi,

As mentioned by our seniors those are correct. You can provide LTA option for 20000/- and 10000/- per year to excemption from IT. LTA can calim year by year. They need to submit bills to excemption from IT.
Thanks and REgards
Sree

Devi,

The reply for your query is..........

1.Even though newly recruited employee's salary is above income tax limit,

Since total employees are less than 20,I think no PF can be deducted from that newly recruited employee's salary.

PF is optional, If you like you can enrol for voluntary coverage;

2. Should I deduct and pay income tax from his salary to IT department on monthly basis or end of March-2009 ?.

Certainly; you have to deduct Income tax and make payment to the department every month. Hope you have got TAN Number (as you said that your in the bracket of taxable limit)

3. Can you guys please help me by providing salary slip format for a Senior Software Engineer earning Rs 50,000 per month?.

Pay structure should be constructed which should benefit both employer and employee; Be alert..!! you will be covered under FBT also; though your income is within the taxable limit.

Please do avail our professional service at nominal cost to choose the package of Small Enterprises IT/ITES from us

for more details call us at 28154246 ask Mr.Selvan who will help you and get complete HR legal solution. with (PF,ESI,Prof. Tax, eTDS,FBT and Income Tax, IEC registration and STPI registration)

Thanks
Devi[/quote]

U/s 10(5) of I.Tax Act, 1961 you can claim exemption only 2 journeys in a block of 4 calender years. The current block year is 2006-2009, i.e., 1 st Jan 2006 to dec 2009.
Am I right ?
Thanks & regards
Ashwini

Hi Paystructure,
So far I know the Law which mentioned "Employer having >10 Employees" was proposed in nature. Please give details as you have mentioned "as per latest law"
Thanks and Regards,
Sanjay

Devi,
Explanation given below though answer your queries to a large extent, I shall also guide you to get in touch with payroll vendors, they are ample and in a samll amount they shall take care of all the statutory compliances.
Cordially,
preet