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The question seems to be very vague, and no reader would be sure for what purpose it is raised. Gross salary is simply the total salary earned by the employee during the wage period before deductions. As such, it can either be a consolidated salary or a total salary comprising basic salary and different kinds of allowances. If it is simply a consolidated salary, the entire sum would be taken into account for the computation of benefits like EPF, bonus, gratuity, etc. when you show it in any document such as payroll, salary slip, etc., to be maintained statutorily.
From India, Salem
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From India, Salem
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If your gross salary is as per minimum wage then it’s better to show it as basic or if gross salary is on higher side then you may set basic either 40 to 50% of gross salary. Regards, Manish
From India, Ahmedabad
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From India, Ahmedabad
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Thanks alot for your prompt answer. Any employee is having gross salary 26000 can we show entire 26000 as basic salary or is it mandatory to split up salary???
From India, Jalalpur
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From India, Jalalpur
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Also it is so that conveyance and HRA is given to marketing employees and not to others???
From India, Jalalpur
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From India, Jalalpur
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You can show that it's fine, but it's better to split it into different heads because a basic salary of 26000 will increase your liability for gratuity, bonus, leave encashment, and everything. You can set the basic around 16000 so that PF is not applicable and allocate the rest to HRA, conveyance, etc., so that they also receive tax benefits.
Regards, Manish
From India, Ahmedabad
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Regards, Manish
From India, Ahmedabad
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Salary slip final.xls
Salary slip.doc