CA said currently there is only P.tax deduction no need of salary structure?

I am in a startup company there is no hr manager to take the advice I am the only 1 admin & the hr executive handles the salary attendance part. My query is our company is hard of 3-5 ppl currently so CA said currently there is only P.tax deduction no need of salary structure eg. basic, hra etc directly you can make a slip in earnings show a fixed salary of the month, Earned salary, the deduction is it fine format?

EXAMPLE:
Aug month salary:

Fixed salary - 35000 (Actual monthly package)
Earned salary - 31613 (Amount After deduction of late marks,lop's/Lwp's)

PT - 200
Total deductions 200
Net salary = 31413

Dear Sayali,

The view of your CA about keeping the consolidated salary structure is correct as long as your organization has less than 10 employees so that Labor Laws having threshold no of employees for application purpose such as EPF Act, Payment of Gratuity Act, Payment of Bonus Act do not apply.

But, you may think from the perspectives of future growth of the organization, employee welfare in the long run, income tax concessions etc. For instance, if you have consolidated salary, entire salary would become taxable. That apart, if there arises any need to devise componentially structured salary in future, legal formalities such as employee consultation and consent would become essential.

Therefore, my suggestion in the interest of both the employer and the employees would be to have a salary structure comprising of the components of basic, dearness allowance, house rent allowance etc., from the very beginning when the organization is small.
Moreover, voluntary participation in social security schemes like EPF, Gratuity Insurance, Profit Sharing etc., are not legally prohibited and in fact such provisions in the salary structure would enhance employee morale and would attract talented hands.

Hello Sayali

As Mr. Umakanthan suggested, its very important to have EPF, Insurance, gratuity implemented from early stages, it will not only make a good will gesture to your employees, but also being compliant in early stages saves you a lot of fines and headaches which may occour at a later stage.

Please free to check the sample salary distribution excel I am attaching here, it will save you a lot of 'reinventing the wheel' part. and I am sure there are some excellent templates on this forum and its always a good practice to get it verified with your CA !

Mr. Umakanthan Sir
Will you please go through the template once as well.

Regards,
Prasanna