Salary Deductions: Can Someone Explain All the Statutory Ones?

Dear,

Can somebody help me with this? What are all the statutory deductions from salary?

Statutory Deductions from Salary

Deductions from salary are as follows:

• **Professional Tax** - This is a tax on employment. The slab rates will change depending on where we are working.

• **Provident Fund** - It's deducted from the basic salary at 12%, and the employer will contribute the same.

• **ESI** - If the salary is below Rs. 10,000, it is applicable. It will be deducted from the gross salary at 1.75%, and the employer will contribute at 4.75%.

• **Income Tax (TDS)** - It's deducted from the total income. Before deducting TDS, we have to compute the total income of the year. If the income exceeds the basic exemption limit (Men: Rs. 1,60,000 & Women: Rs. 1,90,000), then TDS will be deducted as per the Income Tax Slab Rates.

Regards,
Sravan

Hi Deepa,

I agree with Sarvan... a few amendments are needed. The PF and ESI ceiling limits vary from time to time. Please refer to the attached document for further clarification.

I hope this information will be helpful to you.

Regards,
Karthick E.M.

Understanding Statutory Deductions from Salary

If the employed person is covered under The Payment of Wages Act, 1936, please refer to Section 7 of this Act to gain knowledge on statutory deductions from wages.

With Regards,
R.N.Khola

Dear Member,

Whether deductions made on account of company policy can be termed as statutory deductions?

With Regards,

R.N.Khola