Understanding Tax Obligations and Payslip Formats: Can You Help Me Navigate This?

Hi All,

Can anybody provide me with inputs about:

1) The present tax structure for employed individuals. I want to know details such as after what amount of income they have to pay tax, how much they can save to avoid more tax, etc.

2) Format for a payslip.

Your help is deeply appreciated as I am in need of this very badly.

Thanks and regards,
Madhuree

Dear Madhuree,

At the outset, I extend my welcome note for your entry into this forum.

Just for your information, the first meeting of CITEHR - Chennai was held on 15-10-2006, and it was very successful. The second meeting will likely be held on 03-12-2006. Kindly watch the site for more information. Many friends are working on this.

Coming to your query:

1. Tax structure is as follows:

(Tax payable)

For women employees:

- Taxable Income Up to 135000/- Nil
- Rs.135001 to 1500 - 10% of income exceeding 135000
- 150001 to 250000 - 1500 + 20% of income exceeding 150000
- 250001 and above - 21500 + 30% of income exceeding 250000

Other employees:

- Taxable income up to Rs.100000 Nil
- 100001 to 150000 - 10% of income exceeding 100000
- 150001 to 250000 - 5000 + 20% of income exceeding 150000
- 250001 and above - 25000 + 30% of income exceeding 250000
- You have to add Education Cess @ 2% on tax payable
- Surcharge of 10% will be payable only when the taxable income is more than Rs.10,00,000 (ten lakhs)

Permissible deductions from the salary (up to Rs.100000):

- Contribution towards PF
- Group Insurance
- LIC Premium
- Contribution to 15 yr PPF
- NSC purchased during the year
- Contribution to ULIP
- Refund of HBA interest
- Tuition fee paid limited to 2 children
- Infrastructure bonds
- LIC Jeevan Suraksha (limited to 10,000)
- Contribution to the New pension scheme (Limited to 10% of salary)
- Medical insurance (limited to Rs.10000)
- Expenditure incurred on a physically handicapped dependent (50000)
- Donation to PM National Relief Fund
- Physically handicapped assessee Rs.50000 (Rs.75000/- in case of severe disability with 80%)

Regarding the format for the pay slip:

I will provide you with details of what we follow in our setup:

- Name of the employee, department, designation, PAN NO., Employee NO.
- PF No., Bank a/c No. (if salary is credited directly into the bank), Pay scale.

Entitlements: Basic pay, special pay, DA, house rent, city allowance, and other allowances. Total Pay

Deductions: PF, income tax, telephone, recovery of loans, recovery of advances, PF loan. Total Deduction

Total pay - Total deduction = Net Salary

Signature of the authority

Remarks: If you want to convey any common message, this can be displayed.

The salary slip format can be modified to suit your needs.

I hope the above information will be useful to you.

For more details, please contact:

09871487138

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Wishes,

Senthil Raj

Hi Senthil,

In the permissible deduction of salary, you mentioned "Refund of HBA Interest." What is that? Is it anything to do with Housing loan interest? Could you please clarify?

Regards,
Madhuri

Dear Madhuree,

Please visit the Income Tax Department's official website: www.incometaxindia.gov.in.

Regards,
Sathiyamoorthy Iyer

Hi, I am an HR Executive at a new manufacturing firm and would like to gather more details about the HR department and the necessary forms required in that department. To start, I request you to provide me with a salary slip format for a manufacturing firm. Additionally, please outline the basic needs required for a startup firm with 30 employees.

I am looking forward to an early reply.

Thanks and regards,
Rosy