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
From India, Mumbai
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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
From India, Mumbai
Acknowledge(0)Amend(0)
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