Hi All,
Can anyone help me out with the understanding of general PF deduction rules? If we consider an employee's salary on a CTC basis, how much percentage of PF should be deducted? Similarly, with regards to gratuity, when we mention that the salary is based on CTC, is it correct to deduct gratuity from the very first month of a candidate's joining?
From India, Mumbai
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2Can anyone help me out with the understanding of general PF deduction rules? If we consider an employee's salary on a CTC basis, how much percentage of PF should be deducted? Similarly, with regards to gratuity, when we mention that the salary is based on CTC, is it correct to deduct gratuity from the very first month of a candidate's joining?
From India, Mumbai
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Dear PF is always deducted on basic + DA at a fixed percentage, and the employer also contributes at that rate. For example, if your salary is Basic 5000, DA 2000, HRA 2000, other allowances 3000, and incentives 4000, your PF will be deducted on Rs. 5000 at a rate of 12%, i.e., Rs. 600. The employer will also contribute the same amount. So, the CTC will be 5000 + 2000 + 2000 + 3000 + 4000 + 600, totaling 16600.
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Thanks for the reply,
In some companies, the employer states that in the CTC, PF rate is 24% of the basic salary, which means both employer and employee contributions will be deducted. Is it correct to deduct PF contributions from both sides?
Regards
From India, Mumbai
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In some companies, the employer states that in the CTC, PF rate is 24% of the basic salary, which means both employer and employee contributions will be deducted. Is it correct to deduct PF contributions from both sides?
Regards
From India, Mumbai
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CTC is the cost to the company, so it does not include any deductions made on behalf of the employee, like employee contribution to PF, TDS, etc. Some companies mention 24% PF contributions to add clarity to the structure and avoid confusion later.
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Can any one tell me hw we devide salary into the structure of basic hra da convence etc... is there any hardcore rule or we can set all these as per company’s preference....
From India, Delhi
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From India, Delhi
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Hi it is company specific. i am uploading one of the file available in this forum for your reference. rgds vishwanath
From India, Bangalore
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From India, Bangalore
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Dear Mr. Vishwanath, I study the salary sheet send by u pls. explain me wht is PT. Why u take uniform allowance Rs.1000/- & medical allowance 650/- Regards, Arti Chopra
From India, New Delhi
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From India, New Delhi
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professional Tax Salary Tax. Rs 5001-6000 60 6001-10000 80 10001-15000 100 15001-20000 150 20000 ABOVE 200
From India, Hyderabad
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From India, Hyderabad
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Dear Manasa, but i Havent Listen abot Professional Tax, In Salary Structure, is it compulsory or optional for the company.
From India, Bhopal
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From India, Bhopal
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hiiii... i m an accountant. i want to know that is it mandatory if a eomployer deduct PFthan he should also deduct the ESI
From India, Bahadurgarh
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From India, Bahadurgarh
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Can anyone tell me the ways of reducing debtors? Like factoring, debt securitization, and channel financing. Please tell me about those methods that can be easily applied in a company. Also, how can we assess the creditworthiness of customers?
Waiting for your reply.
Thanks and Regards,
Reeetu Chaudhary
From India
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Waiting for your reply.
Thanks and Regards,
Reeetu Chaudhary
From India
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dear ritu this is not the correct forum to raise your query .pls put this query in finance forum,from there you may get some response. regards j s malik
From India, Delhi
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From India, Delhi
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Dear Reetu,
The amount of Gratuity paid under The Payment of Gratuity Act is exempted under the Income Tax Act up to the tune of Rs. 350,000.00. Any amount over and above Rs. 3.5 Lac shall be taxable in the hands of an employee.
Thanks,
Mohd. Arif Khan
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The amount of Gratuity paid under The Payment of Gratuity Act is exempted under the Income Tax Act up to the tune of Rs. 350,000.00. Any amount over and above Rs. 3.5 Lac shall be taxable in the hands of an employee.
Thanks,
Mohd. Arif Khan
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Yes if there is no. of employees more than 20 . it is compulsory to deduct the PF but Esi is only if gross salary is less than 10000
From India, Delhi
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From India, Delhi
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Dear Mr. Vishwanath,
I appreciate the example you have set in explaining the salary breakup. The formulas are also well laid out. However, I want to express a doubt regarding how an employee can attract ESI when his/her gross salary exceeds Rs. 10,000 per month. Kindly remove the ESI factor and repost if possible. Additionally, you may include Superannuation and gratuity deductions with the appropriate percentages.
Best Regards,
Shriya Karve
From India, Mumbai
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I appreciate the example you have set in explaining the salary breakup. The formulas are also well laid out. However, I want to express a doubt regarding how an employee can attract ESI when his/her gross salary exceeds Rs. 10,000 per month. Kindly remove the ESI factor and repost if possible. Additionally, you may include Superannuation and gratuity deductions with the appropriate percentages.
Best Regards,
Shriya Karve
From India, Mumbai
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Hi , I have one qustion..could you please tell me the brackets /range represents the base salary or the gross/net? Regards, Tarun
From India, Delhi
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From India, Delhi
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