Gross & CTC terms in salary

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Student (Querist)
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22 July 2010 hello,

1)Is this equation wrt to Salary correct?
CTC - Employer's PF contribution - Employer's ESIC contribution
= GROSS SALARY - CTC - Employees PF & ESIC - Prof. Tax - TDS = NET SALARY (paid monthy)

2)Is employer's contribution twds PF & ESIC included in CTC?

3)Entire EPF ie 25.61% & ESIC of 6.5% deducted is deposited into treasury or a part is retained by pvt. ltd co. twds admin charge?

thanks
kirti.

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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22 July 2010 1.CTC- cost for apoitment - other costs = gross salary - esi pf and other = net salary.

2. yes

3. no

Student

Student (Querist)
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22 July 2010 hi
can you be clear wrt ans to pt. 3? what % of PF & ESIC deducted by the company is retained and how much is deposited into treasury

thnx

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 July 2010 What ever deducted whether PF,ESI or admin charges need to pay to Govt A/c. employer no rights to keep, ( Out of 25.61% admin charges included and same shall be deposited)

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CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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24 July 2010 full value employer paid to govt. they cant retain this amount

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