Basic salary put rs.4000 for pf calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 Dear all

Sir, I am confuse regarding basic salary. my salary is Rs.35000 and here is following salary structure of my salary:-

SALARY STRUCTURE ARE AS FOLLOW:
Salary Nature Amount (Rs.)

Basic Salary 4,000.00
Dearness Allowance 12,000.00
House Rent Allowance 10,000.00
Transport Allowance 5,000.00
Education Allowance 2,000.00
Medical Allowance 2,000.00
Total Rs. 35,000.00
Less: PF Contribution 960.00
Less: Labour Welfare 10.00
Net Payable Rs. 34,030.00

Sir, Please somebody tell me that we can put basic salary Rs.4000/- if i getting Gross Salary Rs.35,000 if we follow indian Laws. is it possible for less contribution in PF account.

Regards
Roshan Gupta

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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23 June 2017 You have to show basic salary of Rs.4000/-

Amt of PF contribution is available as deduction u/s 80C.

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 Mam i can put basic salary Rs.4000/- if i am drawings salary Rs.35000/- from the company.

or

if there is required to put more the Rs.4000/- as basic salary if drawings Rs.35000/-

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 or
there is any requirement in any existing law for basic salary.

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 my question is not on Deduction or exemption in IT Act.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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23 June 2017 Cant getting exactly what you want to ask

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2017 my basic salary is rs4000 but gross salary is that rs35000 only. company is deducting pf on rs4000/- only. is this permissible Deduction PF on Rs 4000/-? or Basic salary should be about 30% to 50% and PF deduction on 30% to 50% should be made.

or company is right now on Deduction on PF.

my opinion is that company should make basic salary about Rs.10500 to 17500 and then deduct PF on such amount.