Dear Muralidharan,
As a matter of fact, the conveyance allowance of Rs. 800/- and 40% of basic wages in the form of HRA are exempted from income tax. The PF authorities can claim in case the basic wages fixed are less than the minimum wages fixed by the appropriate government for deducting the PF. If you are deducting the PF for more than the prescribed minimum wages, then the PF authorities cannot question you regarding the deduction.
From India, Kumbakonam
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1189As a matter of fact, the conveyance allowance of Rs. 800/- and 40% of basic wages in the form of HRA are exempted from income tax. The PF authorities can claim in case the basic wages fixed are less than the minimum wages fixed by the appropriate government for deducting the PF. If you are deducting the PF for more than the prescribed minimum wages, then the PF authorities cannot question you regarding the deduction.
From India, Kumbakonam
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Dear Mr Vathiraj, Your input has been invaluable!!!! I have amended our salary break-up accordingly. Thank you for all the help ! Warm Regards, Megha A
From India, Maisuru
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From India, Maisuru
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Dear Member,
The ratio of 40% of CTC as Basic is decent enough. As for minimum wages, there is no binding law that states your Basic + DA should be equal to Minimum Wages. However, if you follow the thread on the PF vs. G4S Securities, it is highly likely that the PF authorities will soon be demanding PF contributions on Basic or Minimum wages, whichever is higher.
To keep your future costs in check and have a better salary breakup, it is suggested that the Basic should be equal to minimum wages.
Regards,
Preetam Deshpande
From India, Mumbai
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The ratio of 40% of CTC as Basic is decent enough. As for minimum wages, there is no binding law that states your Basic + DA should be equal to Minimum Wages. However, if you follow the thread on the PF vs. G4S Securities, it is highly likely that the PF authorities will soon be demanding PF contributions on Basic or Minimum wages, whichever is higher.
To keep your future costs in check and have a better salary breakup, it is suggested that the Basic should be equal to minimum wages.
Regards,
Preetam Deshpande
From India, Mumbai
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