If someone has a gross salary of 50,000 and is living in a rental house, how does their salary calculation differ from someone with the same salary living in their own house?
Earnings include basic pay, DA (Dearness Allowance), HRA (House Rent Allowance), Conveyance, and Special allowances. Deductions consist of PF (Provident Fund), PT (Professional Tax), and TDS (Tax Deducted at Source).
From India, Pune
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3Earnings include basic pay, DA (Dearness Allowance), HRA (House Rent Allowance), Conveyance, and Special allowances. Deductions consist of PF (Provident Fund), PT (Professional Tax), and TDS (Tax Deducted at Source).
From India, Pune
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Hi,
You can consider Basic as 50% of the gross salary.
HRA is 40% of the basic wages.
Conveyance Allowance is 1800.
Medical Allowance is 1250.
The rest can be categorized as special allowances.
Regarding deductions, we need to determine whether the employee is covered under PF. If yes, then PF will be 1800.
PT will be calculated according to your state's regulations. For instance, it could be 200 per month and 300 in March, totaling 2500 annually.
TDS cannot be determined solely based on the salary. Various factors come into play, such as actual rent paid, savings, medical plans, hospitalization, etc.
Thank you.
From India, Bangalore
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You can consider Basic as 50% of the gross salary.
HRA is 40% of the basic wages.
Conveyance Allowance is 1800.
Medical Allowance is 1250.
The rest can be categorized as special allowances.
Regarding deductions, we need to determine whether the employee is covered under PF. If yes, then PF will be 1800.
PT will be calculated according to your state's regulations. For instance, it could be 200 per month and 300 in March, totaling 2500 annually.
TDS cannot be determined solely based on the salary. Various factors come into play, such as actual rent paid, savings, medical plans, hospitalization, etc.
Thank you.
From India, Bangalore
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx