Income Tax Salaried Employees
Understanding payslip is necessary as it describes how you are getting paid and what deductions have been made for you.
It is the most important portion of salary and it's a hard and fast component which forms other components of the entire salary.
Employees getting salaries :
CTC or Cost to the corporate is thesum of all the advantages you receive from the corporate within the sort of various allowances. But in-hand salary means what you receive after deducting PF and payable tax.
| CTC | |
|---|---|
| Components | Amount (in Rs) |
| Basic Salary | 2,50,000 |
| Special Allowance | 1,00,000 |
| HRA | 90,000 |
| Medical Reimbursements | 15,000 |
| Medical Insurance for you and your family | 5,000 |
| PF (12% of basic) | 30,000 |
| Performance bonus (between 50,000 to 75,000 based on performance) | 75,000 |
| Total CTC | 5,65,000 |
| Taxable Salary | |
|---|---|
| Components | Amount(in Rs) |
| Basic Salary | 2,50,000 |
| Special Allowance | 1,00,000 |
| HRA (less exemption on production of rent receipts) | 60,000 |
| Bonus received | 75,000 |
| Total Salary | 4,85,000 |
| Less: 12% PF | 30,000 |
| Less: Tax Payable* | 8,240 |
| Take Home Salary | 4,46,760 |
| Tax Payable | |
|---|---|
| Total Salary | Rs.4,85,000 |
| Less: Deduction u/s Section 80C | Rs.1,50,000 |
| Less: Deduction u/s Section 80D | Rs. 5,000 |
| Taxable Salary | Rs.3,30,000 |
| Tax payable (includes cess; excludes interest payable) | Rs.8,240 |
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