Hi Friends,
I have a proprietary firm with 7 employees on full-time salary, each earning a minimum of INR 20,000 per month. We are registered under the Service Tax Act. Do we need to deduct TDS on salaries, and is PF compulsory for us to apply for?
I need your guidance on the same issue.
Regards,
Sumeet
From India, New Delhi
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I have a proprietary firm with 7 employees on full-time salary, each earning a minimum of INR 20,000 per month. We are registered under the Service Tax Act. Do we need to deduct TDS on salaries, and is PF compulsory for us to apply for?
I need your guidance on the same issue.
Regards,
Sumeet
From India, New Delhi
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Hi, Mr. Sumeet,
Whatever the organization, if the wages fall under income tax slabs, you should deduct TDS. However, for a salary of 20,000/-, TDS is not applicable if you can wisely prepare the salary structure.
From India, Bangalore
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653Whatever the organization, if the wages fall under income tax slabs, you should deduct TDS. However, for a salary of 20,000/-, TDS is not applicable if you can wisely prepare the salary structure.
From India, Bangalore
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Please note that the EPF Act is applicable wherever 20 or more employees are working, including direct and indirect employment through contractors or on a contract basis. In your case, if you have more than 7 staff members or any other employees appointed indirectly, the EPF Act would apply accordingly.
Secondly, TDS is applicable based on individual tax planning. In your current scenario for the financial year 2012-13, the annual salary income of an individual is Rs. 20,000/- X 12 = Rs. 2,40,000/- (plus any bonus payable/due). The first 2 lakhs are exempt, and on the balance of Rs. 40,000/-, the tax liability would be Rs. 4,120/-. Monthly TDS of Rs. 344/- will need to be deducted from April 2012 to March 2013 in equal installments. You need to obtain a TIN No. for the same.
Feel free to contact for more details.
Pramod Thakar & Associates
Pune
Email: prassociates7@gmail.com
Phone: 9822435423
From India, Pune
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Secondly, TDS is applicable based on individual tax planning. In your current scenario for the financial year 2012-13, the annual salary income of an individual is Rs. 20,000/- X 12 = Rs. 2,40,000/- (plus any bonus payable/due). The first 2 lakhs are exempt, and on the balance of Rs. 40,000/-, the tax liability would be Rs. 4,120/-. Monthly TDS of Rs. 344/- will need to be deducted from April 2012 to March 2013 in equal installments. You need to obtain a TIN No. for the same.
Feel free to contact for more details.
Pramod Thakar & Associates
Pune
Email: prassociates7@gmail.com
Phone: 9822435423
From India, Pune
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Hi Mr. Pramod,
Thanks for your advise. We are showing the salary structure like below: For employee with package of 22,000 PM
Basic 65% (14300)
HRA 10% ( 2200)
City Compensatory Allw. 5% (1100)
Conveyance 5% (1100)
Medical 5% (1100)
Education 5% (1100)
LTC 5% (1100)
Gross and Net payable is 22,000/- only and no PF as we never applied for EPF.
Is our calculation is correct or not. We are registered only under Service Tax Act.
Regards
Sumeet
From India, New Delhi
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Thanks for your advise. We are showing the salary structure like below: For employee with package of 22,000 PM
Basic 65% (14300)
HRA 10% ( 2200)
City Compensatory Allw. 5% (1100)
Conveyance 5% (1100)
Medical 5% (1100)
Education 5% (1100)
LTC 5% (1100)
Gross and Net payable is 22,000/- only and no PF as we never applied for EPF.
Is our calculation is correct or not. We are registered only under Service Tax Act.
Regards
Sumeet
From India, New Delhi
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Mr. Sumeet,
You need to design a salary structure and also consider other HR and taxation matters with proper consultation. If you are from Pune, you may consult us on this matter, or you should seek advice from a labor consultant in your hometown.
Regards,
Pramod Thakar
Email: pramodthakakr@gmail.com
From India, Pune
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You need to design a salary structure and also consider other HR and taxation matters with proper consultation. If you are from Pune, you may consult us on this matter, or you should seek advice from a labor consultant in your hometown.
Regards,
Pramod Thakar
Email: pramodthakakr@gmail.com
From India, Pune
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Dear
Salary break up should be made after taking income tax in to consideration.
you should have atleast 40% of basic as HRA in other towns like pune and in metro you can have HRA up to 50% which is tax exempted.secondly conveyance should not be more than 800 per month because that is tax exempted.besides this you can have medical reibrusement upto 15000 per year which is tax exempted.
From India, Delhi
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Salary break up should be made after taking income tax in to consideration.
you should have atleast 40% of basic as HRA in other towns like pune and in metro you can have HRA up to 50% which is tax exempted.secondly conveyance should not be more than 800 per month because that is tax exempted.besides this you can have medical reibrusement upto 15000 per year which is tax exempted.
From India, Delhi
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Hey Pramod Thakar,
I am working with a company and getting a salary of Rs. 22,000, but my boss gives it in cash with no bank transaction. I deposit my salary in the bank account as and when I receive it. My company doesn't provide a salary slip, and we don't have a TDS, PF, EPS kind of system. But if I want to change my job to a good firm, what documents should I retain with me? Also, if possible, could you provide the salary structure of Rs. 22,000 where no TDS or EPF is mentioned? Please reply as soon as possible.
From India, Mumbai
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I am working with a company and getting a salary of Rs. 22,000, but my boss gives it in cash with no bank transaction. I deposit my salary in the bank account as and when I receive it. My company doesn't provide a salary slip, and we don't have a TDS, PF, EPS kind of system. But if I want to change my job to a good firm, what documents should I retain with me? Also, if possible, could you provide the salary structure of Rs. 22,000 where no TDS or EPF is mentioned? Please reply as soon as possible.
From India, Mumbai
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TDS(refunds) ON Salary & Withdrawals from EPF Acs.before 5 yrs service.docx