Confused About Salary Deductions and Service Charges in My Offer Letter – Need Advice

First of all, thanks to Cite HR members for providing very useful knowledge about HR and company-related activities every day. I need help related to deductions in my offer letter. My company offered me around 4.7 LPA approximately, and the salary breakup is as follows:

Salary Breakup

- Basic: 15,000/-
- HRA: 7,500/-
- Conveyance: 800/-
- CCA: 4,000/-
- Special Allowance: 7,173
- Gross: 34,473

Deductions

- PF Employee: 2,004
- LWF: 36
- PF Employer: 1,800
- LWF: 12

Net Take-Home: 32,461/-

CTC is 36,513

Service Charge: 2,373

Total CTC including Service Charge: 38,886 (6.5% of CTC)

I have some doubts and need more information. These are:

1. I received my first salary slip, and they deducted Rs. 800 as income tax (IT). Is it correct that the employee contributes to IT even though I already declared my income tax in the declaration form? How can I save this amount? Please suggest.

2. Why was a service charge of 6.5% applied? This was not mentioned in the offer letter. I need to get this detail from a source.

3. Is it correct that if the employer contributes to PF, it should be deducted from CTC?

Looking for active support. Thanks in advance.

Regards,
Mangal

Hi,

Regarding your IT deductions, you have to discuss with your accounts department. They will guide you better. The second thing, service charge deductions - for what, ask your HR department. PF contribution depends on company to company.