21 March 2008
1. There is no specific format for salary slip. THe only thing that you should keep in mind that all the additions & deductions should seperate line item in salary slip.
2. Total 1L investments is allowed as deduction u/s 80C. It Inculdes PPF, EPF, LIC premium paid, Housing loan principle repayment, Tuition fees paid, Stamp duty & registration for residential house property, tax saving mutual fund, Tax saving term deposits etc. Deduction u/s 80D will be Rs. 15,000 for A.Y. 2008-09. The mediclaim premium should not be paid by cash. It should be for the health of holder/wife/childerns/parents.
3. There is no specific % define for TDS on directors salary. The payment is in the nature of salry so it should be dudcted as per section 192A or B which ever is applicable.
4. If the payment to directors is in the nature of professional fees then TDS needs to be deducted as per Section 194J. If teaching is the prime business of the company then it will form Direct Expenses. And accounting entries will be: Provision Entry Coaching Charges-Director(P&L A/c) Dr XXX
Directors Professional Fees payable Cr. XXX. TDS Provision Entry Directors Professional Fees payable Dr XXX Tds On Professional Fees Cr. XXX Payment Entry Directors Professional Fees Payable Dr. Cash or Bank A/c Cr.
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