Your gross salary is made by adding many things along with the basic salary in your salary slip and then after deducting PF etc., the cash in hand salary comes in your account.
Salary Slip: Whether doing a government job or a private job, his salary slip is an important document for any person. It is a legal proof of your job and income from it. From filing income tax return to taking loan from bank, it plays an important role.Also Read: Disney hotstar new plans to go live from 1 september all you need to know
It also has an important role to play while leaving the existing job and applying for another new job. Due to this, it is convenient to negotiate for a salary hike. Your gross salary is made by adding many things along with the basic salary in your salary slip and then after deducting PF etc., the cash in hand salary comes in your account.
Are you well aware of the basic salary, HRA, special allowance, etc., which are included in your salary slip? Many people do not understand all this. It is also important to understand that you should know what the company is giving you apart from the basic salary and for what the money is being deducted. Let us know about them:Also Read: Know about Dilip Kumar wife Saira Banu net worth
1. Basic Salary
The basic salary is mentioned first in the salary slip. On the basis of this, other types of allowance including HRA are determined. PF is also decided on the basis of this.
2. House Rent Allowance (HRA)
HRA means living expenses of the employees. It can be up to 50 percent of the basic salary. The amount of rent you pay in a year while you are on rent, after deducting 10 per cent of your basic salary, can also be an HRA. The company deposits the share which is less of these two. You can claim full or partial tax exemption under the Income Tax Act for the house rent you pay.Also Read: TN SSLC 10th Result 2021 Declared Check Tamil Nadu Board Result with Direct Link
3. Leave Travel Allowance (LTA)
LTA means Leave Travel Allowance is tax free. It helps the personnel in traveling expenses. You can use it for a trip with your kids, spouse and parents. You can claim tax-exemption by taking a holiday trip at least once in a year. For this you need to submit your travel bill with your company.
4. Professional Tax (PT)
This tax is deducted on the basis of your salary. It varies according to the states. There is a rule to deduct a maximum of Rs 2,500 in a year under PT. Professional tax is a state tax whereas income tax is levied by the central government. The employer deducts this amount and deposits it to the state government. You can claim this tax.
5. Target Variable Pay or Performance Bonus (TVP)
It depends on the performance of the worker. Monthly, quarterly or yearly bonus or Target Variable Pay (TVP) is paid based on how good your performance is. It is the employer that decides how much bonus you will get. It is fully taxable.Also Read: Farmer latest news one district one product Scheme benefits for Farmers central Govt approved list of 33 Districts Products
6. Travel Allowance or Conveyance Allowance or Traveling Allowance (TA)
The Conveyance Allowance is given to you by the company when you travel somewhere due to the company’s work. The money received in this is added to the cash in hand salary. The information about your work is also that if you get the Conveyance Allowance up to Rs 1,600, then you will not have to pay tax on it.
7. Medical Allowance
This allowance is given to you in the form of medical cover. Employees can use this facility when needed. For example, some money is deducted for ESIC on the amount up to Rs 21,000, it is deducted for the health needs of the employee. Earlier this deduction was up to Rs 15,000.
8. Special Allowance
It can be called a kind of reward, which is given to encourage employees. Every company’s performance policy is different. It is fully taxable.Also Read: New Wage Code: If you work more than 30 minutes then you will get overtime, rules will change from October 1
9. Provident Fund (PF)
If any company has more than 20 employees, then it is required to follow the retirement benefit under the EPF Act-1952. PF is 12 percent of your basic salary, which is deposited in your PF account. The amount deducted from your salary in PF, the same amount is deposited by the company in your PF account on its behalf. You can withdraw the amount of PF along with interest on leaving the job or if there is a sudden need. You can withdraw the amount of PF along with interest on leaving the job or if there is a sudden need.
