Impact of increasing basic amt in salary on taxation
This query is : Resolved
29 October 2013
If there is increment in salary at what proportion amt should be increased in basic salary
please clarify
please clarify
29 October 2013
IT DEPENDS
.
.
your company may give hike to you with out increasing your basic salary also
.
.
like they will increase da,hra,and other allowances
.
.
if they increase your basic they have to increase their contributions to pf,esi..etc.statutory funds
.
.
your company may give hike to you with out increasing your basic salary also
.
.
like they will increase da,hra,and other allowances
.
.
if they increase your basic they have to increase their contributions to pf,esi..etc.statutory funds
29 October 2013
I would like to know tax implication
29 October 2013
the increase in basic salary is normally a positive to the employee. For eg it increases HRA limit, and many such other benefits.
It also increases PF amount (which is a negative for the employer as his contribution increases)
from Employee angle it is always beneficial to have increase in basic salary instead of special allowances and bonus.
It also increases PF amount (which is a negative for the employer as his contribution increases)
from Employee angle it is always beneficial to have increase in basic salary instead of special allowances and bonus.
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