views but no reps. citehr members pls help
i found some tds calc on taxmann.net where you gotta provide your net income & it computes tds but isn't it right that tds is on net taxable income & not net income. please share your expert views.
Hi friends,
firstly congrats for the wonderful & helpful people who are making citehr a truly great community.
I am a recent HR under probation in a startup IT company & been given many tasks out of which i'm finding major problem in "preparing salary slip for a IT engineer". before anyone says "search the forum" let me say that i've read most of the topics on the subject & downloaded lot of word & excel samples & indeed its useful but lot of confusion so please help.
The company wants me to prepare the salary package of an newly appointed person who would work as software engineer. His gross is around 16k & net around 14k per month.
After reading various posts i came to the conclusion that the basic could be fixed between 3.5k to 4k (lower better), hra 40 to 50% of basic, pf 12% of basic (strictly), professional tax 200 (strictly as per slabs)
I did lot of seraching for tds but did not find anything useful. how do i calculate tds. after fixing the basic how do i divide remaining amout. i have to divide it as hra,grade,special,ta,any others. specific sample salary slip would be highly appreciated.
Vikram Sharma
From India, Mumbai
i found some tds calc on taxmann.net where you gotta provide your net income & it computes tds but isn't it right that tds is on net taxable income & not net income. please share your expert views.
Hi friends,
firstly congrats for the wonderful & helpful people who are making citehr a truly great community.
I am a recent HR under probation in a startup IT company & been given many tasks out of which i'm finding major problem in "preparing salary slip for a IT engineer". before anyone says "search the forum" let me say that i've read most of the topics on the subject & downloaded lot of word & excel samples & indeed its useful but lot of confusion so please help.
The company wants me to prepare the salary package of an newly appointed person who would work as software engineer. His gross is around 16k & net around 14k per month.
After reading various posts i came to the conclusion that the basic could be fixed between 3.5k to 4k (lower better), hra 40 to 50% of basic, pf 12% of basic (strictly), professional tax 200 (strictly as per slabs)
I did lot of seraching for tds but did not find anything useful. how do i calculate tds. after fixing the basic how do i divide remaining amout. i have to divide it as hra,grade,special,ta,any others. specific sample salary slip would be highly appreciated.
Vikram Sharma
From India, Mumbai
Hi,
Try bringing in components like Medical Allowance, Leave Travel Allowance, Phone bill reimbursement, etc.,
For senior levels, you can also include fuel allowance etc.,
All these will help employees save tax.
But note that these components will attract a FBT for the company.
Hope this helps to some extent.
Regards,
Poorna
From India, Madras
26Try bringing in components like Medical Allowance, Leave Travel Allowance, Phone bill reimbursement, etc.,
For senior levels, you can also include fuel allowance etc.,
All these will help employees save tax.
But note that these components will attract a FBT for the company.
Hope this helps to some extent.
Regards,
Poorna
From India, Madras
Hi Poorna,
Thanks for inputs from your side. any help is definately apprecited. though my doubt was resolved. i contacted a few tax/ accounts seniors through various leads & one of them helped me out. i'm posting this information as help/ pointer to others as i could not find it on citehr. i knew about tax planning & that as per new rules you can save upto Rs. 1 lakh. I wanted the tax slabs after that. particularly in my case since the employees gross salary is does not exceed Rs. 2 lakh he can get away by paying no tax if he decides to invest as per tax planning. this is because Rs. 1 lakh income is not taxable. above that Rs. 1 lakh can be saved by investing (read various posts on the same in citehr about tax benefits). above that Rs. 50000 is taxable at 10% & above that Rs. 50000(not sure) is taxable at 20%. Hence in my case the employee with gross pay less than Rs. 2 lakh need not pay income tax if he takes benefit of tax planning.
Vikram Sharma
From India, Mumbai
Thanks for inputs from your side. any help is definately apprecited. though my doubt was resolved. i contacted a few tax/ accounts seniors through various leads & one of them helped me out. i'm posting this information as help/ pointer to others as i could not find it on citehr. i knew about tax planning & that as per new rules you can save upto Rs. 1 lakh. I wanted the tax slabs after that. particularly in my case since the employees gross salary is does not exceed Rs. 2 lakh he can get away by paying no tax if he decides to invest as per tax planning. this is because Rs. 1 lakh income is not taxable. above that Rs. 1 lakh can be saved by investing (read various posts on the same in citehr about tax benefits). above that Rs. 50000 is taxable at 10% & above that Rs. 50000(not sure) is taxable at 20%. Hence in my case the employee with gross pay less than Rs. 2 lakh need not pay income tax if he takes benefit of tax planning.
Vikram Sharma
From India, Mumbai
Dear Vikram,
This is real surprising that You did not find details for such and easy topic on this Forum. You must not be searching the right keywords.
Lately Mr. NityaHR has posted a very nice tax_calc06, and it not only includes all allowances but also the impact of NSS or House Loans.
This tax_cal is a freeware and can be easily seached for.
This shall solve most of your problems.
Best. of Luck!
From India, Panipat
This is real surprising that You did not find details for such and easy topic on this Forum. You must not be searching the right keywords.
Lately Mr. NityaHR has posted a very nice tax_calc06, and it not only includes all allowances but also the impact of NSS or House Loans.
This tax_cal is a freeware and can be easily seached for.
This shall solve most of your problems.
Best. of Luck!
From India, Panipat
Hey thanks friend,
i searched with words like tds & tax deductions. its true citehr has lot of very useful information.
i used nitya tax tool with a friend of mine who is in centrl govt. & believe me we had to make lot of adjustments in that & computation by hand took much less time. but for pvt. companies it is indeed very useful.
i found reylon tax utility very comprehensive whereas taxmann tax tool was best for me to find tds. you just take into account deductions & arrive at your net taxable income & you type that & you get your income tax.
hey btw i saw your from hp, gr8 place for tourism,
Thanks
Vikram
From India, Mumbai
i searched with words like tds & tax deductions. its true citehr has lot of very useful information.
i used nitya tax tool with a friend of mine who is in centrl govt. & believe me we had to make lot of adjustments in that & computation by hand took much less time. but for pvt. companies it is indeed very useful.
i found reylon tax utility very comprehensive whereas taxmann tax tool was best for me to find tds. you just take into account deductions & arrive at your net taxable income & you type that & you get your income tax.
hey btw i saw your from hp, gr8 place for tourism,
Thanks
Vikram
From India, Mumbai
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Sample of Pay Slip.zip
Pay slip.xls