Is it required to show the loan to the employee in his salary slip and the repayment received/deducted thereof, or should the loan component be kept separate from salary? Both from a taxation and HR viewpoint.
Sweta Parakh
From India, Pune
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Sweta Parakh
From India, Pune
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I don't think that recoverable loans and advances sanctioned to an employee could be treated as "income" earned by the individual and taxable under the Income Tax Act. As you are well aware, a salary slip is a periodical statement showing the gross salary earned by the employee, the statutory and other authorized deductions made, and the net salary paid in a given wage/salary period.
Showing the amount and installment number of the loan recovery in the salary slip would enable the employee to know the actual recovery under the head and the balance to be repaid by him. Therefore, even in the absence of any statutory requirement relating to the issue of salary slips and maintenance of Loans and Advances Register for employees, it would be an essential requirement both from accounting and HR viewpoints.
From India, Salem
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6108Showing the amount and installment number of the loan recovery in the salary slip would enable the employee to know the actual recovery under the head and the balance to be repaid by him. Therefore, even in the absence of any statutory requirement relating to the issue of salary slips and maintenance of Loans and Advances Register for employees, it would be an essential requirement both from accounting and HR viewpoints.
From India, Salem
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Salary slip final.xls
Salary slip.doc