Hi
This is Shruti. I am currently helping my husband in his Architecture firm. He has 6 employees. Till now no ones salary actually goes beyond the tax bracket, hence we have not given them any kind of salary break up like (Basic/Conveyance etc). We do provide salary slips to them in which their entire per month salary has been shown as Basic salary. Wanted to know if this practise is correct. In future if our employee size becomes 20, will this create a problem for PF calculation? Also if none of the employees come under the tax bracket, is it still advisable to provide them with some kind of salary break up.
This is Shruti. I am currently helping my husband in his Architecture firm. He has 6 employees. Till now no ones salary actually goes beyond the tax bracket, hence we have not given them any kind of salary break up like (Basic/Conveyance etc). We do provide salary slips to them in which their entire per month salary has been shown as Basic salary. Wanted to know if this practise is correct. In future if our employee size becomes 20, will this create a problem for PF calculation? Also if none of the employees come under the tax bracket, is it still advisable to provide them with some kind of salary break up.