Diya (n/a) 31 December 2007

Payslip

Hello All,
I'm working with a small firm, we want to bifurcate our salary like............. [font=""Book Antiqua""]HRA would be 40 to 60% of basic. [/font][font=""Book Antiqua""]
Basic
HRA (40% of basic)
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month [/font][font=""Book Antiqua""]
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
LTA = 10% of Basic [/font][font=""Book Antiqua""]EX-Gratia/Bonus = A fixed amount as Bonus [/font][font=""Book Antiqua""]

Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
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[font=""Book Antiqua""]Which head is taxable & which is not pl suggest me.[/font]

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[font=""Book Antiqua""]Regards,[/font]
Diya
[font=""Book Antiqua""] [/font]

Reply Follow

4 Replies

venkatachala (n/a) 01 January 2008

[font=""Book Antiqua""]Dear Divya,
In my opinion,the reply is as under: [/font][font=""Book Antiqua""]

SALARY INCOME :Basic+[/font][font=""Book Antiqua""] HRA (40% of basic)+[/font][font=""Book Antiqua""] Other Allowance+(LTA-journey expenditure of family restricted to AC First Class based on proof of actual journey)+ [/font][font=""Book Antiqua""] Annual Fixed Gross Cost+medical expenditure exceeding 15000 incurred in hospital other than Govt./CIT approved hospital.

[/font][font=""Book Antiqua""]Note:
(TA Reimbursed/Mobile Reimbursement for official purposes/ [/font][font=""Book Antiqua""] PF Contribution[/font][font=""Book Antiqua""]/a[/font][font=""Book Antiqua""] ESI Contribution a[/font][font=""Book Antiqua""]re exempted from Income) [/font][font=""Book Antiqua""]
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Futher clarification,if any is welcome.
Regards.

Diya (n/a) 01 January 2008

Thanks Nihar & Warm wishes for year 2008.

Regards,
Diya

Shambasiv (n/a) 01 January 2008

1) Basic Salary is taxable under the head salary
2) HRA will be taxable on the basis of least of the following
a) If he is staying in Metro city 50% of salary otherwise 40%. Salary include, Basic+DA+Fixed % of commission on fixed turnover.
b) Rent received for the period for which he occupied property.
c) 10% above the basic salary
Least of the above is exempt, rest if any he is received is taxable part of HRA.
3) TA is exempt from tax @ Rs. 800/- per month.
4) Other allowance will be taxable as salary.
5) Mobile reimbursement per month is fully taxable in the hand of employee.
6) PF contribution up to 12% is exempt during the year. If it is recognized PF.
7) ESIC contributed by employee is 1.75% of salary contributed by employer is 4.75% in excess of it will taxable as salary.
8) If any employee getting as reimbursement of medical bill or paid by employer as facility up to 15000/- is exempt. So Rs. 10000/- will not be taxable as salary.
9) He can avail LTA TWO times in block of FOUR calender year. Aactual fair for him and dependent.
10) Bonus is taxable as salary @ 8.33% per month or one month of salary.