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Similar to Salary format for assessment year 20 - 21
Similar to Salary format for assessment year 20 - 21 (20)
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Salary format for assessment year 20 - 21
- 1. B.Com PA – Sri Ramakrishna College of Arts and Science Page 1 Salary XXX Dearness Allowance XXX Bonus XXX Commission XXX Employers contribution to Provident fund a) Statutory Provident Fund b) Recognized Provident Fund Less: 12% of the Salary Salary = Basic Salary + Dearness Allowance ( enters into service benefits) + Commission on Turnover c) Unrecognized Provident Fund XXX XXX Exempted XXX Ignored Interest credited to Provident fund a) Statutory Provident Fund b) Recognized Provident Fund Less: Upto 9.5% of interest rate c) Unrecognized Provident Fund XXX XXX Exempted XXX Ignored Fully taxable Allowance a) City Compensatory Allowance b) Fixed Medical Allowance, Lunch Allowance, Project Allowance, Over Time allowance c) Entertainment Allowance XXX XXX XXX Format for calculating Salary Income
- 2. B.Com PA – Sri Ramakrishna College of Arts and Science Page 2 Partly Taxable Allowance a) House rent allowance Least of the following is exempted i) 40/50 % of Salary ii) Actual iii) Rent paid – 10% of Salary Salary = Basic Salary + Dearness Allowance ( enters into service benefits) + Commission on Turnover b) Uniform allowance, Academic Research allowance, Helper allowance, conveyance allowance Less : Actual expenditure for official purpose XXX XXX XXX XXX XXX XXX XXX XXX XXX c) Children Educational allowance Less: Rs.100 pm Per child d) Hostel Education allowance Less : Rs.300 pm per child XXX XXX XXX XXX XXX XXX Exempted Perquisites a) reimbursement of medical bill Govt. hospital / hospital owned by employer -- fully exempted Private hospitals - fully taxable b) Interest free loan Loan upto Rs.20000 – fully exempted Interest rate of SBI is taxable if loan Amount is more than Rs.20000 d) Free Education Rs.1000 pm per child XXX XXX XXX
- 3. B.Com PA – Sri Ramakrishna College of Arts and Science Page 3 Taxable Perquisites: a) Rent free accomadation (i) Govt Employee – License fee (ii) Private Employee I) owned by employer a)Population more than 25 lakhs 15% of Salary b) Population between 10 lakhs to 25 lakhs - 10% of salary c)Population less than 10 lakhs 7.5% of Salary II) Hired by employer 15% of Salary or Actual Hire Charges Which ever is less Salary = Basic Salary + Dearness Allowance ( enters into service benefits) + Commission of all types + Bonus + Taxable Part of all allowances Add: 10% cost of furnishing And actual hire charge of furniture b) Any obligation of employee met by employer c) Free Servants employed by employee and paid by employer d) Life insurance premium paid by employer XXX XXX XXX XXX XXX XXX
- 4. B.Com PA – Sri Ramakrishna College of Arts and Science Page 4 Perquisites taxable for Specified Employee Specified employee a) Monetary benefit more than Rs.50000 b) Holding 20% of voting rights c) Director of a company a) Free gas, water , Electricity b) Free servants appointed by employer and Paid by employer c) Car used partly for official and partly for private purpose: Less than 1.6 lt – 1800 pm More than 1.6 lt – 2400 pm Driver – 900 pm XXX XXX XXX XXX Profit in Lieu of Salary a) Leave Travel concession Less: Actual expenses b) Gratuity i) Death cum retirement Gratuity ii) Gratuity under payment act 1972 Least of the following is exempted i) 15 days salary for every completed year of service I ii) Actual gratuity iii) Notified limit Salary = Salary + DA 15 days salary = 15/26 x salary iii) Gratuity received by others i) ½ month average salary for every completed year of service (ignore months) ii) Actual gratuity iii) Notified limit Salary = Basic Salary + Dearness Allowance ( enters into service benefits) + Commission on Turnover Avg Salary: Salary for preceding 10 months XXX XXX 20,00,000 XXX XXX 20,00,000 XXX XXX XXX XXX XXX XXX XXX Exempted XXX XXX
- 5. B.Com PA – Sri Ramakrishna College of Arts and Science Page 5 c) Commutation of pension i) if he receives gratuity 1/3rd of the pension from the commuted pension is exempted ii) if he does not receives gratuity 1/2 of the pension from the commuted pension is exempted d) Leave encashment Least of the following is exempted a) Actual b) Average salary x 10 c) Notified limit d) Average salary x number of leave in balance XXX XXX 300000 XXX XXX XXX XXX XXX XXX GROSS SALARY XXX Deduction u/s 16 16(1) Standard Deduction (actual or Rs.50000) WEL 16 (2) Entertainment allowance (applicable only for Govt employees) Least of the following is exempted a) 1/5 of basic salary b) Actual c) Notified limit = 5000 16(3) Professional tax paid (if any) XXX XXX XXX XXX XXX XXX TAXABLE SALARY XXX