We processed FNF in Jun, where we deducted RS.9230/- towards the Notice Period. Subsequently, we decided to reimburse RS.4500/- from the deducted Notice Period amount. We have issued form 16 where we show a gross salary of Rs.15824/-, but as per employee, he ask to issue Form 16 of RS 20324/-
What is the correct gross salary? Please let us know along with the section if there is one so that we can reply to him.
From India, Ahmedabad
What is the correct gross salary? Please let us know along with the section if there is one so that we can reply to him.
From India, Ahmedabad
Monthly gross salary and deductions are two different things. Monthly gross salary is without deducting anything and also it is notional salary. Whereas deductions may be for different reasons and on actual basis.
In the instant case monthly gross salary should be prior to deduction of any amount for whatsoever reasons.
Please calculate accordingly.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
334In the instant case monthly gross salary should be prior to deduction of any amount for whatsoever reasons.
Please calculate accordingly.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
Is the reimbursement a part of salary or an additional extra payment for reimbursement of expenses?
If it is a part of salary, then it is already included in gross.
If it is expense reimbursement then it will not come in Form 16 anyway.
Besides, if the former employee is filing tax returns, he can always show the additional earning in his return even if it is not in Form 16. I think he is basically trying to use it to justify a higher salary told to some other employer.
From India, Mumbai
If it is a part of salary, then it is already included in gross.
If it is expense reimbursement then it will not come in Form 16 anyway.
Besides, if the former employee is filing tax returns, he can always show the additional earning in his return even if it is not in Form 16. I think he is basically trying to use it to justify a higher salary told to some other employer.
From India, Mumbai
The tax rates are determined by the government and are based on income slabs. The income tax calculation is done based on the following formula: Taxable Income = Gross Salary - Deductions; Income Tax =Taxable Income x Applicable Tax Rate) - Tax Rebate.
Therefore, one has to pay what actually received at the end.
From India, Mumbai
Therefore, one has to pay what actually received at the end.
From India, Mumbai
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