It refers to the amount of tax deducted by your employer on behalf of Income Tax department. It is levied in some states only and calculated on the basis of an individual’s tax slab.
This pay slip component is levied on all individuals, including the salaried, professionals and traders who have an income. Notably, your contribution towards the EPF is exempted from tax as per Section 80C of Income Tax Act. This component of your salary slip is at least 12% of your basic salary and diverted to an EPF account.
This comprises a compulsory deduction in your salary slip. An employer may categorize such allowances under a specific head or group them as “Other Allowances”.
Other Allowances: This comprises the various additional allowances paid by an employer for any reason. This is given to encourage employees for a better performance. You can claim a part of the HRA as a tax deduction, provided you live in a rented house as per Section 10 of the Income Tax Act, 1961. The amount of HRA depends on the location and ranges between 40%-50% of basic pay. It is an allowance to help people pay their house rent. This pay slip component typically features in case of government employees. It is completely taxable and need to be declared while ITR filing. It also serves as a basis for determining the other components of salary.Ĭalculated as a percentage of your basic pay, DA is given to offset the impact of inflation. This comprises 35% to 40% of your salary, thus it is perhaps the most important component of salary. What are the Components of a Salary Slip?
It helps to pay the eligible remuneration to be paid the employee as per there their attendance here we use a formula such as a month edate text if countif date validation to find out the remuneration to be paid to the employee. SALARY SLIP About the attendance sheet: In every organization attendance sheet creation is the important to work of the employee.
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