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kashyap (abc)     03 May 2013

How much percentage basic salary for pf deduction

Dear Senior

often one question is asked that what is the percentage of basic salary because there is no clarification some perectioner say basic salary should be 60% on gross remaining 40% can be bufricated in HRA, CCA and other allowance. few practioner say there is no specific rule that basic salary should be 60% they decide 40,45, and 50.

Therefore please clarify this confusion is there any central govt rule in private sector basic salary should be 60% is there any notification please attach.

Thank's & Regards

Kashyap



Learning

 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     07 May 2013

 

Basic Salary: As the name suggests, this forms the very basis of salary. This is the core of salary, and many other components may be calculated based on this amount. It usually depends on one’s grade within the company’s salary structure.It  is a fixed part of one’s compensation structure.

Allowance: It is the amount received by an individual paid by his/her employer in addition to salary to meet some service requirements such as Dearness Allowance(DA), House Rent Allowance (HRA), Leave Travel Assistance(LTA) , Lunch Allowance, Conveyance Allowance , Children’s Education Allowance, City compensatory Allowance etc.  Allowance can be fully taxable, partly or non taxable. Understanding the components of your salary and their taxati 


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