Hi
I had prepared a salary statement for a Public Limited Company and one of the person who is in accounts said that the bifurcation of amount what I had done is wrong. Can anyone suggest me what problems are there in issuing this statement and clarify my doubt whether it is okay or not.
From India, Visakhapatnam
1I had prepared a salary statement for a Public Limited Company and one of the person who is in accounts said that the bifurcation of amount what I had done is wrong. Can anyone suggest me what problems are there in issuing this statement and clarify my doubt whether it is okay or not.
From India, Visakhapatnam
Dear Anupam
Your accounts is correct as you had bifurcate the salary wrongly. The correct should be:-
You should include in monthly ctc the Company Contr. to Provident fund,Superannuation, LTA. But i will not suggest to make notional provision for gratuity as part of CTC as the same is applicable when the employee fulfill the conditions as mentioned in Payment of Gratuity Act, 1972. One more suggestion HRA ideally should not be more than 50% of Basic Pay as HRA up to 50% of Basic if staying in metro cities are permissible for tax exemption under Income Tax Act, 1961.
From India, Gurgaon
Your accounts is correct as you had bifurcate the salary wrongly. The correct should be:-
You should include in monthly ctc the Company Contr. to Provident fund,Superannuation, LTA. But i will not suggest to make notional provision for gratuity as part of CTC as the same is applicable when the employee fulfill the conditions as mentioned in Payment of Gratuity Act, 1972. One more suggestion HRA ideally should not be more than 50% of Basic Pay as HRA up to 50% of Basic if staying in metro cities are permissible for tax exemption under Income Tax Act, 1961.
From India, Gurgaon
Hi Anupama
As per your statement you shall take Medical reimbrsement as 1250 & remove mobile reimbursement. for that you should provide bills.
Basic should be not less than minimum wage act. so study the minimum wage act. But as per my knowledge for any industry basic is not less than 4200/-
HRA. Correct HRA as 50% or 60% from basic.
You shall exclude professional allowance.
From India, Bangalore
As per your statement you shall take Medical reimbrsement as 1250 & remove mobile reimbursement. for that you should provide bills.
Basic should be not less than minimum wage act. so study the minimum wage act. But as per my knowledge for any industry basic is not less than 4200/-
HRA. Correct HRA as 50% or 60% from basic.
You shall exclude professional allowance.
From India, Bangalore
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