Salary Structure for Loan Application
I'm running a proprietorship in the service sector with three employees. I pay a monthly salary to all of them, which are as follows: $18,500, $18,500, and $12,000. There are no deductions (No PF, No PT) in the salary except for their absences. Now, one of them is applying for a vehicle loan and is asking for a salary slip. Can anybody tell me what the structure for his salary of $18,000 should be?
I want to help him get the loan but am confused about how to proceed. Please suggest the structure for the salary.
Regards,
Abhijeet
From India, Mumbai
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1I'm running a proprietorship in the service sector with three employees. I pay a monthly salary to all of them, which are as follows: $18,500, $18,500, and $12,000. There are no deductions (No PF, No PT) in the salary except for their absences. Now, one of them is applying for a vehicle loan and is asking for a salary slip. Can anybody tell me what the structure for his salary of $18,000 should be?
I want to help him get the loan but am confused about how to proceed. Please suggest the structure for the salary.
Regards,
Abhijeet
From India, Mumbai
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Hi, Here I attached Common Sturcture. I hope it will help you. You can modified in it. Regards, Hardik
From India, Ahmadabad
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From India, Ahmadabad
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Considerations for Structuring Salary
While designing or structuring a salary, one must consider income tax and other state laws. Without knowing the state of operation, it is challenging to create the salary structure. However, if the gross annual income is below Rs. 2.00 lakh in both cases, which is the basic exemption from income tax, there is no need for a structured salary; you may pay it as gross income.
Suggested Salary Structure
If you still prefer a structured salary, for Rs. 12,000 per month, it would be:
- Basic: Rs. 8,000
- HRA: Rs. 3,200
- Conveyance Allowance: Rs. 800
For Rs. 18,500 per month, it would be:
- Basic: Rs. 12,500
- HRA: Rs. 5,000
- Conveyance Allowance: Rs. 800
- Newspaper and Periodicals: Rs. 200
Regards,
From India, New Delhi
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While designing or structuring a salary, one must consider income tax and other state laws. Without knowing the state of operation, it is challenging to create the salary structure. However, if the gross annual income is below Rs. 2.00 lakh in both cases, which is the basic exemption from income tax, there is no need for a structured salary; you may pay it as gross income.
Suggested Salary Structure
If you still prefer a structured salary, for Rs. 12,000 per month, it would be:
- Basic: Rs. 8,000
- HRA: Rs. 3,200
- Conveyance Allowance: Rs. 800
For Rs. 18,500 per month, it would be:
- Basic: Rs. 12,500
- HRA: Rs. 5,000
- Conveyance Allowance: Rs. 800
- Newspaper and Periodicals: Rs. 200
Regards,
From India, New Delhi
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