Are my below examples for seton and set off are correct?
The formula for set on is (Available surplus - Max Bonus) or 20 % of Salary which ever is less
For example, available surplus of company "A" in a year 2012-13 = Rs 10,00,000/-
Allocable Surplus for that year = Rs 600,000/- (for non banking company @ 60% of available surplus )
Say Salary payable by Company A in the year 2012-13 = Rs 12,00,000/-
Max Bonus by the Company A in that year @20 % in the year 2012-2013= Rs 2, 40, 000/-
Seton for the year 2013-14 = (Available surplus - Max Bonus) or 20 % of Salary which ever is less = Rs 600,000 - Rs 2, 40,000 = Rs 3, 60,000/-
Therefore Rs 2, 40,000/- is seton since Rs 3, 60,000/
Example of Set Off:
The formula for set off is ( Minimum Bonus-Available surplus)
For example minimum bonus to be paid by a company is Rs.100,000/-
Allocable surplus is 10,000/-
From India, Mumbai
9The formula for set on is (Available surplus - Max Bonus) or 20 % of Salary which ever is less
For example, available surplus of company "A" in a year 2012-13 = Rs 10,00,000/-
Allocable Surplus for that year = Rs 600,000/- (for non banking company @ 60% of available surplus )
Say Salary payable by Company A in the year 2012-13 = Rs 12,00,000/-
Max Bonus by the Company A in that year @20 % in the year 2012-2013= Rs 2, 40, 000/-
Seton for the year 2013-14 = (Available surplus - Max Bonus) or 20 % of Salary which ever is less = Rs 600,000 - Rs 2, 40,000 = Rs 3, 60,000/-
Therefore Rs 2, 40,000/- is seton since Rs 3, 60,000/
Example of Set Off:
The formula for set off is ( Minimum Bonus-Available surplus)
For example minimum bonus to be paid by a company is Rs.100,000/-
Allocable surplus is 10,000/-
From India, Mumbai
Dear friends, Calculation on Set On and Set Off in the above posting is correct. Note : The calculation on Set Off provision is incomplete. Abbas.P.S
From India, Bangalore
From India, Bangalore
Well explained, but incomplete as said. I request any one can continue the above complete Set off caliculation with the given example. Many thanks in advance. Eagerly waiting ......!!!
From India, Mumbai
From India, Mumbai
Set on= (Available surplus-Max Bonus) or (Allocable Surplus-Max Bonus) need clarification??
From India, Mumbai
From India, Mumbai
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SALARY SHEET CALCULATION.xls