I work in a very small company and am paid Rs. 5000 per month in a lump sum cash payment. My salary is not broken down into components like Basic, DA, HRA, CA, etc. Additionally, deductions such as TDS, EPF, and PT do not apply to my case given the salary amount and the number of employees.
Could someone please advise me on how to display the breakdown of my salary in the 'salary certificate' and 'salary payslip,' and what details should be included?
Thank you!
From India, Mumbai
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1Could someone please advise me on how to display the breakdown of my salary in the 'salary certificate' and 'salary payslip,' and what details should be included?
Thank you!
From India, Mumbai
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But can you advise me some breakup? If I show 'consolidated', it will look suspicious I think. Can there be allowances if salary is paid by cash?
From India, Mumbai
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From India, Mumbai
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You haven't mentioned how many people work in your company. You mentioned a salary of 5k, but why are they not entitled to PF? Anyways, if you want to break down the salary, you can consider taking 50% of 5000 as Basic, 40-50% as HRA, 800 for conveyance, etc. However, it's quite confusing as you mentioned that no such deductions are done and no contribution either.
From India, Calcutta
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From India, Calcutta
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Salary Certificate
Mr xxxxx is working with us as a “Post name”, placed at “City Name” with a CTC of Rs 60,000/- These are the CTC details.
Head Particular Annual Package Monthly Package
Basic 24000 2000
HRA 18000 1500
Special Allowance (Attire Allowance) 2400 200
Conveyance Allowance 3600 300
Medical Allowance 3600 300
Petrol Allowance 6000 500
Additional Allowance 2400 200
Gross Salary Before Deductions 60000 5000
Deduction - TDS and Loan Arrears 4800 400
Gross Salary After Deductions 55200 4600
With Regards,
Name
Authorised Signatory
Company Name
From India, Bangalore
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Mr xxxxx is working with us as a “Post name”, placed at “City Name” with a CTC of Rs 60,000/- These are the CTC details.
Head Particular Annual Package Monthly Package
Basic 24000 2000
HRA 18000 1500
Special Allowance (Attire Allowance) 2400 200
Conveyance Allowance 3600 300
Medical Allowance 3600 300
Petrol Allowance 6000 500
Additional Allowance 2400 200
Gross Salary Before Deductions 60000 5000
Deduction - TDS and Loan Arrears 4800 400
Gross Salary After Deductions 55200 4600
With Regards,
Name
Authorised Signatory
Company Name
From India, Bangalore
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Hi Vikram, thanks a lot. But there is no TDS because my salary is below taxable slab. How did you put TDS then? Also, can I make monthly salary slip with these details you provided instead of salary certificate?
From India, Mumbai
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From India, Mumbai
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Exclude the TDS part. However, you can prepare the salary slips in this format. This is usually used by start-up companies. If you work in a CA's office, please note that new rules state that even a company with just one employee needs to register under EPF and ESI, and deductions must be made.
-- Vikram
From India, Bangalore
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-- Vikram
From India, Bangalore
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Are you sure? I thought the rule for EPF is a minimum of 10 employees, mine has only 5. Do you have any links about this new rule? Also, can I omit some allowances from your list like medical?
Thank you so much.
From India, Mumbai
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Thank you so much.
From India, Mumbai
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Google the rule about EPF and ESI. And also YES you can take our some points like medical, but ussually medical benifits are found on every company’s payslip — -Vikram
From India, Bangalore
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From India, Bangalore
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Oh okay, because I read somewhere that medical allowance has some other complicated rules, so I just felt like omitting it.
By the way, check this site: EPFO <link updated to site home>
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
- Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette. (List of Industries/Establishments)
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
For employers:
- Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
And for ESI: ESIC-Chinta Se Mukti <link updated to site home> ( Search On Cite | Search On Google )
Coverage under the ESI Act, 1948
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
From India, Mumbai
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By the way, check this site: EPFO <link updated to site home>
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:
- Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette. (List of Industries/Establishments)
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
For employers:
- Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
And for ESI: ESIC-Chinta Se Mukti <link updated to site home> ( Search On Cite | Search On Google )
Coverage under the ESI Act, 1948
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
From India, Mumbai
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Salary-Note.doc
SALARY SHEET CALCULATION.xls