I need everyone's advice on the following query:
In our company, the rule for leave without pay is to deduct the salary per working day. For example, if the salary of an employee is Rs. 26,000 per month (breakup is BASIC-13,000, DA-4,500, CONVEYANCE ALLOWANCE-1,600, HRA-4,000, MEDICAL ALLOWANCE-1,300, AND SPECIAL ALLOWANCE-1,600) and the total days in a month are 30 - if the employee takes Leave without pay for 3 days, 3 x 26,000/30 = 2,600 would be deducted. So, I want the full breakdown of the salary. Is there any formula? Basically, I want to create a salary slip. Please help.
Thanks and await your response urgently.
Sameer
From India, Indore
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7In our company, the rule for leave without pay is to deduct the salary per working day. For example, if the salary of an employee is Rs. 26,000 per month (breakup is BASIC-13,000, DA-4,500, CONVEYANCE ALLOWANCE-1,600, HRA-4,000, MEDICAL ALLOWANCE-1,300, AND SPECIAL ALLOWANCE-1,600) and the total days in a month are 30 - if the employee takes Leave without pay for 3 days, 3 x 26,000/30 = 2,600 would be deducted. So, I want the full breakdown of the salary. Is there any formula? Basically, I want to create a salary slip. Please help.
Thanks and await your response urgently.
Sameer
From India, Indore
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Sameer,
The deductions will be for all the components. So, all the components will be divided by the number of days for that month, and the salary will be calculated. Not directly on the gross. Therefore, the deductions will also vary.
Additionally, the salary slip will show the present days, leave days, and absent days. The total should be more than the number of days for that month.
Regards,
From India, Mumbai
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The deductions will be for all the components. So, all the components will be divided by the number of days for that month, and the salary will be calculated. Not directly on the gross. Therefore, the deductions will also vary.
Additionally, the salary slip will show the present days, leave days, and absent days. The total should be more than the number of days for that month.
Regards,
From India, Mumbai
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all the components will be processed on pro-rata basis. As statutory calculations are done on basic and Gross, hence statutory will be processed for 27 days only.
From India, New Delhi
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From India, New Delhi
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Thank you for the help, @SHWETANAIR.11. There was one more thing I needed to know - if there is a professional tax deduction of Rs 208, how will the calculation be done? I mean, will the professional tax be deducted first from the total salary, and then the deduction will be for all the components percentage-wise, or vice versa? Please reply urgently.
From India, Indore
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From India, Indore
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Dear all,
In the payment slip, there should not be any deduction for unpaid days. You should only pay him for the days he attended work, including weekly offs, etc. Additionally, the professional tax slab is based on the gross salary earned and not on any deductions. Therefore, do not deduct unpaid days but pay according to the actual days worked.
Regards,
Clement
From India, Pune
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In the payment slip, there should not be any deduction for unpaid days. You should only pay him for the days he attended work, including weekly offs, etc. Additionally, the professional tax slab is based on the gross salary earned and not on any deductions. Therefore, do not deduct unpaid days but pay according to the actual days worked.
Regards,
Clement
From India, Pune
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You first need to arrive at the gross salary payable of the month. (Gross salary is before any deductions). Professional Tax deduction is based on gross salary slabs. Then, as per the gross salary, you need to determine what Professional tax you will deduct. The amount will differ for different states. In my example, I have shown the same for Mumbai Location. (Gross Salary above Rs 10,000 has Professional Tax as Rs 200). So, instead of Rs 200, you need to show the amount applicable to your state. Please note that any deduction, be it Professional Tax, PF, ESIC, TDS, or any other deduction, will always be done after we compute the gross salary of the employee based on payable days.
From India, Mumbai
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From India, Mumbai
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Dear all,
From Sameer's query, I understand that he wants to be paid in full without a deduction of 2600, which is incorrect. He needs to be paid for 27 days and all statutory deductions should be made accordingly.
Regards,
Clement
From India, Pune
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From Sameer's query, I understand that he wants to be paid in full without a deduction of 2600, which is incorrect. He needs to be paid for 27 days and all statutory deductions should be made accordingly.
Regards,
Clement
From India, Pune
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How much should the medical allowance be? What are the breakups for medical allowances? Is there any basic formula for HRA, i.e., should it be 40% or 50% of Basic? Please let me know if there is anything like that.
From India, Vadodara
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From India, Vadodara
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@shweta - In this case, how will the tax calculation (TDS) be done for this employee who has been paid for only 26 days? Do we need to deduct TDS based on his gross salary or the net amount credited to his account (i.e., after adjusting the salary for absent days)? Please advise.
Thanks
From India, Pune
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Thanks
From India, Pune
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TDS is deducted every month. However it is not based on the attendance of every month.
The below is just a brief on how tax is calculated. Pl consult a tax expert for detailed explanation.
At the beginning of financial year (Apr) or the employee joining date whichever is applicable, the employee gives his tax investment declarations to the company.
Then basis the below the payroll department determines the employee tax for the year as per the employee tax slab.
• employees annual gross salary
• tax rules pertaining to conveyance allowance , medical allowance
• Annual employee PF contribution
• Annual PT contribution
• Tax investments (as per eligibility under various tax sections 80C , 80 D, 80 DD etc)
The same amount is then divided among the 12 months and deducted accordingly in every month salary.
Then in Dec or Jan, the company asks the employee to give the actual investment proofs. Then basis the proofs and the TDS already deducted, the TDS for remaining months is reworked and accordingly deducted.
Also if an employee joins in middle of financial year (e.g Oct), then the new company asks the employee to provide details of TDS deducted in his previous company.
From India, Mumbai
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The below is just a brief on how tax is calculated. Pl consult a tax expert for detailed explanation.
At the beginning of financial year (Apr) or the employee joining date whichever is applicable, the employee gives his tax investment declarations to the company.
Then basis the below the payroll department determines the employee tax for the year as per the employee tax slab.
• employees annual gross salary
• tax rules pertaining to conveyance allowance , medical allowance
• Annual employee PF contribution
• Annual PT contribution
• Tax investments (as per eligibility under various tax sections 80C , 80 D, 80 DD etc)
The same amount is then divided among the 12 months and deducted accordingly in every month salary.
Then in Dec or Jan, the company asks the employee to give the actual investment proofs. Then basis the proofs and the TDS already deducted, the TDS for remaining months is reworked and accordingly deducted.
Also if an employee joins in middle of financial year (e.g Oct), then the new company asks the employee to provide details of TDS deducted in his previous company.
From India, Mumbai
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(Fact Checked)-The information provided in the user reply is correct regarding the calculation and deduction of TDS based on tax declarations, investments, and proofs. No corrections needed. (1 Acknowledge point)
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Thanks Shweta for the immediate response.
From India, Pune
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From India, Pune
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(Fact Checked)-Thanks for the response. (1 Acknowledge point)
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My company is Techpapa he is not pay me 2 months salary and when i ask him he gives me falls promise in every month and he not respond my mail, plz give me a suggestion how can i get my salary.
From India, Noida
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From India, Noida
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i want to know is bonus deducted form the salary part. kamaljeet singh 9557761562
From India, Gurgaon
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From India, Gurgaon
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Hi,
I want to know if the bonus amount is deducted from the salary. Here is a breakdown of the components:
- Basic: 12000, paid per month
- HRA: 6000, paid per month
- Conv. Allow.: 800, paid per month
- Special Allowance: 8227, paid per month
- Gross Total (Per Month): 27027
- P.F.: 1440, employer contribution
- Bonus: 700, as per the Bonus Act
- Grand Total CTC PM: 29167
- CTC Per Annum: 350004
Please let me know if the bonus is deducted from the salary.
Thank you.
From India, Gurgaon
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I want to know if the bonus amount is deducted from the salary. Here is a breakdown of the components:
- Basic: 12000, paid per month
- HRA: 6000, paid per month
- Conv. Allow.: 800, paid per month
- Special Allowance: 8227, paid per month
- Gross Total (Per Month): 27027
- P.F.: 1440, employer contribution
- Bonus: 700, as per the Bonus Act
- Grand Total CTC PM: 29167
- CTC Per Annum: 350004
Please let me know if the bonus is deducted from the salary.
Thank you.
From India, Gurgaon
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In one of the engineering industries in Gummidipoondi, they declared a holiday other than the weekly off and festival holidays in July 2019. The excess holiday is 6 days. The normal closed holiday in July 2019 is 4. They declared a total of 10 days as closed days, meaning no production. They calculated one day's wages by dividing 21 instead of 26. Is it correct?
From India, Chennai
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From India, Chennai
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x
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(Fact Checked)-The professional tax deduction is applied before the salary components are calculated. The deduction should be made from the total salary amount. Thank you for your query. (1 Acknowledge point)