Hello All,
Please clarify my doubt below.I have a PF component separately mentioned in my offer letter,but i feel that this amount is deducted in my salary component itself.how can i identify this whether it is deducted from my salary component or not.I have given an example of package details as given below.
Basic:220000
FBP:388544
base Sal:6,08,544
PF:12%:26400
Grat:10582
Total Fixed Pay:6,45,526
Since the PF component is shown separately here how will be the deduction calculated?Please advise
Regards
Karthik
From Australia, Rhodes
Please clarify my doubt below.I have a PF component separately mentioned in my offer letter,but i feel that this amount is deducted in my salary component itself.how can i identify this whether it is deducted from my salary component or not.I have given an example of package details as given below.
Basic:220000
FBP:388544
base Sal:6,08,544
PF:12%:26400
Grat:10582
Total Fixed Pay:6,45,526
Since the PF component is shown separately here how will be the deduction calculated?Please advise
Regards
Karthik
From Australia, Rhodes
Rs. 6,45,526 should be your CTC and not salary. The word 'Total Fixed Pay' is wrongly used.
The company has mentioned its contribution part of PF & Gratuity as component of your salary ('Total Fixed Pay') which is wrong.
Employer contribution of PF/ESI & Gratuity is employer's liability and should not be deducted from employee's salary.
From India, Pune
173The company has mentioned its contribution part of PF & Gratuity as component of your salary ('Total Fixed Pay') which is wrong.
Employer contribution of PF/ESI & Gratuity is employer's liability and should not be deducted from employee's salary.
From India, Pune
Dear Karthik,
CTC is calculated out from all the components in connection with your employment.
I made an interpretation of your salary package-
To be shown in the monthly payroll-
Basic 18333/ (Annual 18333.33X 12=220000)
FBP-32379/ (Annual 32378.66x12=388544)
Now the Employer Contributions for EPF and Grauity.
Annual EPF- 12% on 220000=26400
Annual Gratuity-4.81% on 220000=10582
Now sum up of your CTC
Salary through Payroll-
Basic:220000-A
FBP:388544-B
Employer's contributions
EPF:26400-C
Gratuity:10582-D
CTC-A+B+C+D=645526
Hope it is clear!
S.Sethupathy,
Excellent HR Services.
Erode.
From India, Selam
CTC is calculated out from all the components in connection with your employment.
I made an interpretation of your salary package-
To be shown in the monthly payroll-
Basic 18333/ (Annual 18333.33X 12=220000)
FBP-32379/ (Annual 32378.66x12=388544)
Now the Employer Contributions for EPF and Grauity.
Annual EPF- 12% on 220000=26400
Annual Gratuity-4.81% on 220000=10582
Now sum up of your CTC
Salary through Payroll-
Basic:220000-A
FBP:388544-B
Employer's contributions
EPF:26400-C
Gratuity:10582-D
CTC-A+B+C+D=645526
Hope it is clear!
S.Sethupathy,
Excellent HR Services.
Erode.
From India, Selam
Dear All,
Thanks for the details.Can you please brief on the deduction? Eg:Give me a monthly salary break up?
PF contributions is supposed to contributions from employer right?
Does this CTC means PF is component part of my salary package and company deducts it from my salary for PF?
Does this mean they show this PF component as part of package of employee and deduct it from employee salary itself?
Is this the way every company is doing it?
Sorry to bug with these questions.Wherever i have worked i had asked for clarity and never got a clear details.So,Please answer the above.
Thanks & Regards,
Karthik
From Australia, Rhodes
Thanks for the details.Can you please brief on the deduction? Eg:Give me a monthly salary break up?
PF contributions is supposed to contributions from employer right?
Does this CTC means PF is component part of my salary package and company deducts it from my salary for PF?
Does this mean they show this PF component as part of package of employee and deduct it from employee salary itself?
Is this the way every company is doing it?
Sorry to bug with these questions.Wherever i have worked i had asked for clarity and never got a clear details.So,Please answer the above.
Thanks & Regards,
Karthik
From Australia, Rhodes
Dear Karthik,
Your contribution (Employee's) alone can be deducted from your salary.
Your monthly payslip is like this.....
Earnings columns- Basic 18334 + FBP-32379 =50,713
Deductions columns- PF 2200
Net payable-50,713-2200=48,513. (here they can deduct TDS and Professional Tax as applicable)
Employer's Contribution towards PF and Gratuity are also due for you but you can get them on your withdrawal eligibility ie at the time of resignation.
Hope I made it clear...
S.Sethupathy,
Excellent HR Services,
Erode
From India, Selam
Your contribution (Employee's) alone can be deducted from your salary.
Your monthly payslip is like this.....
Earnings columns- Basic 18334 + FBP-32379 =50,713
Deductions columns- PF 2200
Net payable-50,713-2200=48,513. (here they can deduct TDS and Professional Tax as applicable)
Employer's Contribution towards PF and Gratuity are also due for you but you can get them on your withdrawal eligibility ie at the time of resignation.
Hope I made it clear...
S.Sethupathy,
Excellent HR Services,
Erode
From India, Selam
CTC is the acronym for Total Cost to the Company.
It is the sum total of all the perquisites and fringe benefits which an employee gets from the company including the salary.
The CTC is the sum of the gross salary, bonus, all types of contributions by the employer for the employee(PF/ESIC/Gratuity etc.), other perquisites, and benefits. The CTC contains benefits such as fixed medical reimbursement, insurance benefits, Travel Allowance, Telephone expenses, etc.
From India, Pune
It is the sum total of all the perquisites and fringe benefits which an employee gets from the company including the salary.
The CTC is the sum of the gross salary, bonus, all types of contributions by the employer for the employee(PF/ESIC/Gratuity etc.), other perquisites, and benefits. The CTC contains benefits such as fixed medical reimbursement, insurance benefits, Travel Allowance, Telephone expenses, etc.
From India, Pune
Dear All, kindly provide me pf challan with auto word printing where Total rupees should come in words automatically, Thanks & Best Regards D.RAJESHNETHA HR Mgr. HYDERABAD 9959000879
From India, Hyderabad
From India, Hyderabad
Dear Sethu,
Thanks for your valuable time and feedback.Now things are clear.I have one more question, please look into this whether you can help me with it or not.
I'm planning to take an housing loan which will give me an 1.50 lakh deductions in my income,along with this can i avail my HRA also for deduction?
I'm going to live and work in the same city where the property is co-located.Is it possible to avail HRA for tax execemption in this scenario?
Regards
Karthik
From Australia, Rhodes
Thanks for your valuable time and feedback.Now things are clear.I have one more question, please look into this whether you can help me with it or not.
I'm planning to take an housing loan which will give me an 1.50 lakh deductions in my income,along with this can i avail my HRA also for deduction?
I'm going to live and work in the same city where the property is co-located.Is it possible to avail HRA for tax execemption in this scenario?
Regards
Karthik
From Australia, Rhodes
Dear Karthick,
If you claim the house is a self occupied, then the claim in the part of HRA is not valid.
Please check the recent amendments in the IT act, I came across a point that you have income only from salary upto 5 lacs, you need not submit any return from this year.
If you plan to show some income as a rent from that house you have to submit return.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
If you claim the house is a self occupied, then the claim in the part of HRA is not valid.
Please check the recent amendments in the IT act, I came across a point that you have income only from salary upto 5 lacs, you need not submit any return from this year.
If you plan to show some income as a rent from that house you have to submit return.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc