Understanding Your Payslip: How to Calculate Earnings and Taxes with Examples

Hi all,

Greetings! Please clarify this:

Basic - 2100

HRA - 1050

CCA - 210

Conv - 800

Med. All - 1250

Spl. All - 1590

LOP - 12

Worked days - 18

Salary - 4200.

1. How to calculate the earnings column in the payslip?
2. Let me know the tax calculation formula.
3. Any Excel format to collect the tax documents from employees.

Please let me know.

Regards,

MATHI

Hi,

I am forwarding you the tax calculation sheet. Please input the figures to determine the taxable salary and the tax to be paid. To avail of the tax benefit, the employee is required to submit the original documents to declare the investments and fill out the declaration form.

If an employee wishes to save on his HRA or seeks an exemption for HRA from tax, please provide the rent payment slip. The rent payment should be less than the HRA paid by the company. I hope this information is helpful to you.

Regards