Dear All
Kindly advise me about the calculation of PF & PT at the time of resignation of an employee, for Eg:
As per rule employee need to serve 1 month Notice period,
he/she served 17 days notice period out 31 days.
co. is fixed max PF slab as Rs780/- for those who drawing more than Rs6500/- as Basic+DA.
Now we need to pay him/her 14 days Salary (31 - 17) (3 days LOP + 14 days Notice Period Receovery)
for that 14 days his/her basic+da is more than Rs6500/-
So we have to deduct Rs780 or 780/31*14(only proportinate days contribution)
Same way PT is Rs200/31*14 or Full amount of Rs200
Please advise
Baginesh
From India, Bangalore
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3Kindly advise me about the calculation of PF & PT at the time of resignation of an employee, for Eg:
As per rule employee need to serve 1 month Notice period,
he/she served 17 days notice period out 31 days.
co. is fixed max PF slab as Rs780/- for those who drawing more than Rs6500/- as Basic+DA.
Now we need to pay him/her 14 days Salary (31 - 17) (3 days LOP + 14 days Notice Period Receovery)
for that 14 days his/her basic+da is more than Rs6500/-
So we have to deduct Rs780 or 780/31*14(only proportinate days contribution)
Same way PT is Rs200/31*14 or Full amount of Rs200
Please advise
Baginesh
From India, Bangalore
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PF is to be deducted out of the Basic + DA of actual salary paid only. Similarly, Profession Tax should also be deducted out of actual salary paid for the month. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Dear madhu Sir
My doubt was, if employee is worked for 14 days and his actual basic+Da is more than Rs6500/- whether we need to deduct full amount of contribution for a month rs780/- as the max PF amount fixed for those who are drawing more than Rs6500 as basic+DA OR Rs352 (780/31*14)
Bagi
From India, Bangalore
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My doubt was, if employee is worked for 14 days and his actual basic+Da is more than Rs6500/- whether we need to deduct full amount of contribution for a month rs780/- as the max PF amount fixed for those who are drawing more than Rs6500 as basic+DA OR Rs352 (780/31*14)
Bagi
From India, Bangalore
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Dear Bagi, For 14 days only u have to deduct PF Amount on Basic+DA Of 12% only morethan 6500/- charu
From India, Hyderabad
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From India, Hyderabad
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Dear Bhagi,
Although the person worked for 14 days but for salary computation basic for 14 days is more than Rs. 6500/- therefore one must apply the same rule which you had applied in paying Rs.780/- as PF.
Therefore, you have to deduct PF on Rs. 6500/- i.e Rs. 780/-
Likewise for Professional Tax, after computing the monthly gross, you have to check whether the monthly gross has come in to which slab and accordingly you have to deduct the PT.
PT Slabs..... (pls. verify the slabs with your accounts dept)
Upto Rs.5000---Nil
Rs.5000-Rs.6000--Rs.60-/-
Rs.6001-Rs.10,000--Rs.80-/-
Rs.10,001-Rs.15,000--Rs.100-/-
Rs.15,001-Rs.20,000--Rs.150-/-
Rs.20,000 above Rs.200-/-
I hope I have solved your query. feel free to write again.
Thanks & Regards
Prachi Hardas
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Although the person worked for 14 days but for salary computation basic for 14 days is more than Rs. 6500/- therefore one must apply the same rule which you had applied in paying Rs.780/- as PF.
Therefore, you have to deduct PF on Rs. 6500/- i.e Rs. 780/-
Likewise for Professional Tax, after computing the monthly gross, you have to check whether the monthly gross has come in to which slab and accordingly you have to deduct the PT.
PT Slabs..... (pls. verify the slabs with your accounts dept)
Upto Rs.5000---Nil
Rs.5000-Rs.6000--Rs.60-/-
Rs.6001-Rs.10,000--Rs.80-/-
Rs.10,001-Rs.15,000--Rs.100-/-
Rs.15,001-Rs.20,000--Rs.150-/-
Rs.20,000 above Rs.200-/-
I hope I have solved your query. feel free to write again.
Thanks & Regards
Prachi Hardas
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Dear Charu, Seema & Prachi
Thanks for your valuable time and suggestions.
Sorry if am wasting your time, still i got doubt, please find the attached file which i have prepared for more clarification. kindly check the same and advise me for last, and am working in Bangalore and heard that PT slab is as
Rs.150 for Rs10,000 to Rs14,999/-
Rs.200 for Rs15,000 and Above
Correct me if am wrong,
Bagi
From India, Bangalore
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Thanks for your valuable time and suggestions.
Sorry if am wasting your time, still i got doubt, please find the attached file which i have prepared for more clarification. kindly check the same and advise me for last, and am working in Bangalore and heard that PT slab is as
Rs.150 for Rs10,000 to Rs14,999/-
Rs.200 for Rs15,000 and Above
Correct me if am wrong,
Bagi
From India, Bangalore
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sorry u wil get PT Slab information from google site.in case if u have any quiries please let me know charu
From India, Hyderabad
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From India, Hyderabad
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HI Bagi,
I have seen the calculation posted by you and also checked the google web to understand PT Slabs in Karnataka.
As I understand,
Monthly Gross(NET BEFORE DEDUCTIONS) is Rs. 31000/- (in the given case study) therefore the Last Slab of PT is applicable which is "Rs.15,000/- and above Rs200/-"
Therefore you have to deduct Rs.200/- for PT.
FYI
Thanks & Regards
Prachi Hardas
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I have seen the calculation posted by you and also checked the google web to understand PT Slabs in Karnataka.
As I understand,
Monthly Gross(NET BEFORE DEDUCTIONS) is Rs. 31000/- (in the given case study) therefore the Last Slab of PT is applicable which is "Rs.15,000/- and above Rs200/-"
Therefore you have to deduct Rs.200/- for PT.
FYI
Thanks & Regards
Prachi Hardas
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Dear Bagi,
Deduction of PF at 12% is considered only on the earnings of basic + DA, and not based on the number of working days. If the salary of basic + DA goes beyond Rs 6500, which is the ceiling for PF, within 14 days worked, you should deduct Rs 780 as PF contribution. Simultaneously, you should calculate the deduction for the remaining 17 days' wages in the Full and Final Settlement using the following formula: Gross salary / 26 * 17 days.
There is no need to worry about PF calculation during the Notice Period. (The Notice period is solely based on company internal policy and not related to PF).
Regards,
K. Ganesh
From India, Madras
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Deduction of PF at 12% is considered only on the earnings of basic + DA, and not based on the number of working days. If the salary of basic + DA goes beyond Rs 6500, which is the ceiling for PF, within 14 days worked, you should deduct Rs 780 as PF contribution. Simultaneously, you should calculate the deduction for the remaining 17 days' wages in the Full and Final Settlement using the following formula: Gross salary / 26 * 17 days.
There is no need to worry about PF calculation during the Notice Period. (The Notice period is solely based on company internal policy and not related to PF).
Regards,
K. Ganesh
From India, Madras
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Trouble Ahead_ I-T Dept Tells EPFO to Tax Premature PF Withdrawals.pdf