Hi all,
We are a small startup with 3 employees. We don't have a dedicated HR, and we end up doing many things on our own. We are revising the pay of our employees to 2.88 LPA. What are the deduction components in the payslip? We understand we should deduct Professional tax (TN), which is Rs. 200 per month. We don't have PF as we are too small. Is this amount taxable, and what component does it fall under?
Please advise on the salary slip format for this. Waiting for your kind help in this regard.
Thanks in advance.
Regards, Swarna
From India, Coimbatore
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We are a small startup with 3 employees. We don't have a dedicated HR, and we end up doing many things on our own. We are revising the pay of our employees to 2.88 LPA. What are the deduction components in the payslip? We understand we should deduct Professional tax (TN), which is Rs. 200 per month. We don't have PF as we are too small. Is this amount taxable, and what component does it fall under?
Please advise on the salary slip format for this. Waiting for your kind help in this regard.
Thanks in advance.
Regards, Swarna
From India, Coimbatore
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Hi Swarna,
As per your request, there is a deduction of EPF, ESI, PT on a monthly basis. For these, you have to register with the EPF (PF Regional Office), ESI (Regional Office), and PT (Coimbatore) corporation. Only then can you deduct from employees and pay to the respective department. The deductions are exempted from Income Tax under sec 10.
Regards, Prakash G 9003009639
From India, Chennai
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1As per your request, there is a deduction of EPF, ESI, PT on a monthly basis. For these, you have to register with the EPF (PF Regional Office), ESI (Regional Office), and PT (Coimbatore) corporation. Only then can you deduct from employees and pay to the respective department. The deductions are exempted from Income Tax under sec 10.
Regards, Prakash G 9003009639
From India, Chennai
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Hi Swarna,
EPF is applicable only if you have 20 or more headcount, including contractual workmen. ESI is applicable when the count is 10 or above.
Yes, PT needs to be deducted and remitted to the local municipal authorities. The amount is not Rs. 200. In Tamil Nadu, there are 5 slabs, and it is paid on a half-yearly basis, i.e., in March and September. Additionally, registration is required for this.
If the salary is around 2.88 PA, then Income Tax is not applicable as it is below the threshold limit.
From India, Bangalore
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EPF is applicable only if you have 20 or more headcount, including contractual workmen. ESI is applicable when the count is 10 or above.
Yes, PT needs to be deducted and remitted to the local municipal authorities. The amount is not Rs. 200. In Tamil Nadu, there are 5 slabs, and it is paid on a half-yearly basis, i.e., in March and September. Additionally, registration is required for this.
If the salary is around 2.88 PA, then Income Tax is not applicable as it is below the threshold limit.
From India, Bangalore
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Hi Sir, Thank you very much for the clarity provided. We will go ahead and design our salary structure as suggested. Regards Swarna
From India, Coimbatore
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From India, Coimbatore
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Payslip.xls
Payslip Format.docx