How Should I Structure an $18,000 Salary Slip for a Loan Application? Need Advice!

Salary Structure for Loan Application

I'm running a proprietorship in the service sector with three employees. I pay a monthly salary to all of them, which are as follows: $18,500, $18,500, and $12,000. There are no deductions (No PF, No PT) in the salary except for their absences. Now, one of them is applying for a vehicle loan and is asking for a salary slip. Can anybody tell me what the structure for his salary of $18,000 should be?

I want to help him get the loan but am confused about how to proceed. Please suggest the structure for the salary.

Regards,
Abhijeet

Here I have attached the common structure. I hope it will help you. You can modify it as needed.

Regards,
Hardik

Considerations for Structuring Salary

While designing or structuring a salary, one must consider income tax and other state laws. Without knowing the state of operation, it is challenging to create the salary structure. However, if the gross annual income is below Rs. 2.00 lakh in both cases, which is the basic exemption from income tax, there is no need for a structured salary; you may pay it as gross income.

Suggested Salary Structure

If you still prefer a structured salary, for Rs. 12,000 per month, it would be:
- Basic: Rs. 8,000
- HRA: Rs. 3,200
- Conveyance Allowance: Rs. 800

For Rs. 18,500 per month, it would be:
- Basic: Rs. 12,500
- HRA: Rs. 5,000
- Conveyance Allowance: Rs. 800
- Newspaper and Periodicals: Rs. 200

Regards,