One of our employees has worked for only 3 months with us. During these 3 months, no tax has been deducted from his salary. Please suggest what to do if the employee asks for a salary certificate.
Also, kindly suggest if the reimbursement (conveyance + mobile) also gets credited to the bank along with the salary, is it taxable?
Waiting for a reply...
Thanks,
Sangeeta
From India, Calcutta
Acknowledge(0)
Amend(0)
3Also, kindly suggest if the reimbursement (conveyance + mobile) also gets credited to the bank along with the salary, is it taxable?
Waiting for a reply...
Thanks,
Sangeeta
From India, Calcutta
Acknowledge(0)Amend(0)
A salary certificate can be provided. Conveyance, under certain conditions, is taxable if it is considered part of the salary. If conveyance is provided against various bills as routine expenditure, then it may not be taxable, but regularity should be avoided. Regarding mobile expenses, whether paid in cash or transferred to the bank, they are not taxable provided that bills are obtained from the employee.
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
Issuing Salary Certificates
Salary certificates can be issued to employees on a monthly basis, detailing components of salary and statutory deductions like PF & ESI for the concerned month. Details of reimbursements for the month need not be included in the salary certificate. It is not advisable to issue one consolidated salary certificate for all three months.
Thanks & Regards,
S. Shanmugaram
From India, Madras
Acknowledge(0)Amend(0)
Salary certificates can be issued to employees on a monthly basis, detailing components of salary and statutory deductions like PF & ESI for the concerned month. Details of reimbursements for the month need not be included in the salary certificate. It is not advisable to issue one consolidated salary certificate for all three months.
Thanks & Regards,
S. Shanmugaram
From India, Madras
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY CERTIFICATE- MINISTRY OF FINANCE's Notification on formats.docx