Hello , I am in process of designing the salary slip...please help...
What is the maximum limit for Basic Salary percentage in Gross salary... can we opt anything of our choice...or is there any defined percentage as per the law. Please specify the law against it...Thanks...
what else can be added...
From India, Delhi
What is the maximum limit for Basic Salary percentage in Gross salary... can we opt anything of our choice...or is there any defined percentage as per the law. Please specify the law against it...Thanks...
what else can be added...
From India, Delhi
• Basic Salary
Generally in many of the organisations it is calculated as 50% on the gross wages. But we have to ensure that basic shall not be less than minimum wages act. Many of the IT, ITES & service industries will club both Basic & DA together. Every year there will be revision in minimum wages and it varies from industry to industry and location as well as the skills type
• HRA (House Rent Allowance)
As per the Income Tax department HRA is exemption is of 50% on the basic wages for Metro cities and 40% for other locations. This exemption shall be considered for the employees who stay in rented premises only.
• Medical Allowance
As per the Income Tax department there is option to have exemption of Rs. 15,000/- Per annum (Rs. 1250/- Per Month) under Medical Allowance / Medical reimbursement. If we declare anything above 15000/- per annum then it is taxable income.
• Transport Allowance/Conveyance Allowance
As per the Income Tax department there is option to have exemption of Rs. 19,200/- Per annum (Rs. 1600/- Per Month) under Medical Allowance / Medical reimbursement. This allowance is to cover the travel expenditure House to Office & return back. If you claim any travel expenses which was incurred on official trip then it is fully exempted from the income tax. Those allowances shall be claimed separately by submitting the expenses list or by providing bills.
• Children Education Allowance
Children education allowance is exempted of Rs. 100 per month and for the max of 2 children.
• Leave travel Allowance
LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption.
LTA is calculated only on the travel tickets and Food and accommodation is not considered for LTA exemption.
LTA shall be claimed twice in a block 4 years. Current block is 2014-2017.
• Other Allowance/Special allowances
Many companies will pay part of the amount as other allowance or special allowances and those are fully taxable income only.
From India, Bangalore
604Generally in many of the organisations it is calculated as 50% on the gross wages. But we have to ensure that basic shall not be less than minimum wages act. Many of the IT, ITES & service industries will club both Basic & DA together. Every year there will be revision in minimum wages and it varies from industry to industry and location as well as the skills type
• HRA (House Rent Allowance)
As per the Income Tax department HRA is exemption is of 50% on the basic wages for Metro cities and 40% for other locations. This exemption shall be considered for the employees who stay in rented premises only.
• Medical Allowance
As per the Income Tax department there is option to have exemption of Rs. 15,000/- Per annum (Rs. 1250/- Per Month) under Medical Allowance / Medical reimbursement. If we declare anything above 15000/- per annum then it is taxable income.
• Transport Allowance/Conveyance Allowance
As per the Income Tax department there is option to have exemption of Rs. 19,200/- Per annum (Rs. 1600/- Per Month) under Medical Allowance / Medical reimbursement. This allowance is to cover the travel expenditure House to Office & return back. If you claim any travel expenses which was incurred on official trip then it is fully exempted from the income tax. Those allowances shall be claimed separately by submitting the expenses list or by providing bills.
• Children Education Allowance
Children education allowance is exempted of Rs. 100 per month and for the max of 2 children.
• Leave travel Allowance
LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption.
LTA is calculated only on the travel tickets and Food and accommodation is not considered for LTA exemption.
LTA shall be claimed twice in a block 4 years. Current block is 2014-2017.
• Other Allowance/Special allowances
Many companies will pay part of the amount as other allowance or special allowances and those are fully taxable income only.
From India, Bangalore
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
02 Modify Basic details Process.pdf
Salary-Note.doc