Dear All
I work for a small IT Company. Though i got a general idea about the Pay roll process, like to learn indepth about the Pay roll process. I felt rather than reading a book, getting info from all you experienced people will be more useful to me and people who read this.
So, kindly help me with important info about Pay roll Process.
Also, the Salary Break up. When you consider Annual CTC, how much to consider for Basic, HRA, Medical, Travel, LTA etc...along with the limit of Tax exemption.
What about Food Allowance?
Hope to hear from you guys...
Regards
Sundu
From India, Bangalore
1I work for a small IT Company. Though i got a general idea about the Pay roll process, like to learn indepth about the Pay roll process. I felt rather than reading a book, getting info from all you experienced people will be more useful to me and people who read this.
So, kindly help me with important info about Pay roll Process.
Also, the Salary Break up. When you consider Annual CTC, how much to consider for Basic, HRA, Medical, Travel, LTA etc...along with the limit of Tax exemption.
What about Food Allowance?
Hope to hear from you guys...
Regards
Sundu
From India, Bangalore
Hi Sundu,
You can go in to the archives of Cite HR for reply, there has been many discussions on this topic here.
Generally it goes like this:
CTC comprise of all these componenets:
Basic - 30 % or 40 %
HRA - 50 % of Basic
Medical - 1250 per month /15,000 per annum
Transport Allowance - 9600 per annum
PF contribution by employer - 12% of the basic
Special allowance - the balancing figure
Best Regards'
Anu
From India, Hyderabad
You can go in to the archives of Cite HR for reply, there has been many discussions on this topic here.
Generally it goes like this:
CTC comprise of all these componenets:
Basic - 30 % or 40 %
HRA - 50 % of Basic
Medical - 1250 per month /15,000 per annum
Transport Allowance - 9600 per annum
PF contribution by employer - 12% of the basic
Special allowance - the balancing figure
Best Regards'
Anu
From India, Hyderabad
Hi Anu I want to ask the same thing sundu ask. Please let me know how to get it. Regards Sujata
From India, Faridabad
From India, Faridabad
Dear Sandu,
Anu is very true about the bifercation, however I will say, actually there is no hard and fast rule for break ups, only thing is you have to follow the minimum wages act, about the bifercation of CTC, it again depends on the kind of amount your company is offering, if its anything more than 35k/month for anyone, I will suggest try to put some reimbersments as well the part of the salary to provide IT benefits to the employees, like telephone reimbursment, petrol reim, driver reim, car reim, etc.
As far as employers contribution is concerned, it will be 12% of basic as PF, 15 days basic salary per year as Graduty.
Regards,
Pashupati Singh
Anu is very true about the bifercation, however I will say, actually there is no hard and fast rule for break ups, only thing is you have to follow the minimum wages act, about the bifercation of CTC, it again depends on the kind of amount your company is offering, if its anything more than 35k/month for anyone, I will suggest try to put some reimbersments as well the part of the salary to provide IT benefits to the employees, like telephone reimbursment, petrol reim, driver reim, car reim, etc.
As far as employers contribution is concerned, it will be 12% of basic as PF, 15 days basic salary per year as Graduty.
Regards,
Pashupati Singh
Hi Pashupati Cud you please let me know wht is difference between allowance and reimbursement and what is the limit for each. Regards Sujata
From India, Faridabad
From India, Faridabad
Hi Would like to know how to deduct tax on Salary. Would also like to know how to calculate net salary after PF and tax. If somebody can help me out. Regards Sujata
From India, Faridabad
From India, Faridabad
Sujata,
Just take care, that in case of reimbursement, you need to inform the employees that for taking tax exemetions, they need to submit the original vouchers for the same.
Like for example:
For Medical reimbursement, ay you have given a head for Rs/- 15,000 p.annum ( as per tax law, up to Rs. 15000/- is exempt from Tax ), an employee needs to submit original supporting like, medical bills, doctor fee receipts to claim exemption otherwise it is treated as taxable.
Best Regards'
Anu
From India, Hyderabad
Just take care, that in case of reimbursement, you need to inform the employees that for taking tax exemetions, they need to submit the original vouchers for the same.
Like for example:
For Medical reimbursement, ay you have given a head for Rs/- 15,000 p.annum ( as per tax law, up to Rs. 15000/- is exempt from Tax ), an employee needs to submit original supporting like, medical bills, doctor fee receipts to claim exemption otherwise it is treated as taxable.
Best Regards'
Anu
From India, Hyderabad
Hii, I am not sure but i Think allowance is a fixed amont will be given with salary, and the reimbursement will given on produce of bills for the usage of facility upto a limit Regards Sameer
Hi Anu
Thanks for the update. Is sameer right regarding reimbursement and allowance? Secondly,
Would also like to know how to calculate net salary after PF and tax? If you could just help me out?
Regards
Sujata
From India, Faridabad
Thanks for the update. Is sameer right regarding reimbursement and allowance? Secondly,
Would also like to know how to calculate net salary after PF and tax? If you could just help me out?
Regards
Sujata
From India, Faridabad
Dear All,
Anu is very clear about this however just to make this simpler, Allowance and reimbersment don`t have much diiffrence as far as the salary bifercation is concerned, yes the difference comes into picture while calculating the IT, If someone has got any reimbursment as the part of salary, he/she by producing the bills can claim it as non-taxable income, however the employer should provide this facility to the employees because if the employer provides this reimbusrsment facility to the employees, employer needs to pay FBT to the government in lieu of that.
Still many employer provides this facility as the FBT is far lower than the IT rates.
If anyone requires any further clarification, kindly feel free to give me a call on 09810975857.
Regards,
Pashupati Singh
Anu is very clear about this however just to make this simpler, Allowance and reimbersment don`t have much diiffrence as far as the salary bifercation is concerned, yes the difference comes into picture while calculating the IT, If someone has got any reimbursment as the part of salary, he/she by producing the bills can claim it as non-taxable income, however the employer should provide this facility to the employees because if the employer provides this reimbusrsment facility to the employees, employer needs to pay FBT to the government in lieu of that.
Still many employer provides this facility as the FBT is far lower than the IT rates.
If anyone requires any further clarification, kindly feel free to give me a call on 09810975857.
Regards,
Pashupati Singh
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