Salary query

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2012 Dear Sir,

I have newly joined accountant job.
i want to prepare salary structure for 10lakhs- per Annam as gross remuneration

Calculate TDS on salary for assessment year
and show it in offer letter all the deductions with professional tax.

requesting for suggestion

CA Prasanna

CA Prasanna (Expert)

16 April 2012 Hi,

My opinion based on two different scenarios-(1)your company has pre-defined salary structure (2)You are going to define the slary structure for that particular employee.

In case of scenario (1) above-
Your TDS amount will change accordingly elements of salary package.Beacause there is different taxation rules for allowances and perquisites.

In case of scenario(2) above-
If you are expected to design the salary structure for that employee, I would suggest that you go through all of Income Tax Act and Rules regarding taxation of Salary so that salary elements designed in such a way that new joinee will be charged lesser amount of tax.

Hence TDS amount will vary on the different components of salary.

For your reference sending the link of websites which may help you to understand salary related taxation.

https://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx
https://law.incometaxindia.gov.in/DIT/income-tax-rules.aspx

Feel free to contact for further clarifications!!

CA Kishore Tallam

CA Kishore Tallam (Expert)

17 April 2012 U may put all tax free components in salary structure like Transport Allowance, Education Allowance, Meal Coupons, Medical Reimbursements, LTA, Telephone Reimbursements, etc.,

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