Hi guys,
I joined a company in May 2017 as a software developer in Hyderabad and I was not working in India for past two years so I have no knowledge of tax deductions in India so please bear with me. Following is the salary breakdown offered to me, CTC agreed before joining was 9.5LPA:
|
Components
|
Monthly
|
Yearly
|
|
Basic
|
47000
|
564000
|
|
House Rent Allowance
|
21150
|
253800
|
|
Medical Allowance
|
1250
|
15000
|
|
Conveyance
|
1600
|
19200
|
|
Bonus
|
0
|
0
|
|
Performance Allowance
|
2847
|
34162
|
|
Personal Allowance
|
2847
|
34162
|
|
Gross( A)
|
76694
|
920324
|
|
EMPLOYER CONTRIBUTIONS
|
||
|
PF
|
1800
|
21600
|
|
PF Admin charges
|
173
|
2076
|
|
GPI
|
500
|
6000
|
|
ESI @ 4.75% on Gross
|
0
|
0
|
|
Sub Total (B)
|
2473
|
29676
|
|
CTC ( A+B)
|
79167
|
950000
|
|
EMPLOYEE CONTRIBUTIONS
|
||
|
PF 12% @ Basic
|
1800
|
21600
|
|
ESI @ 1.75% on Gross
|
0
|
0
|
|
Professional Tax
|
200
|
2400
|
|
Sub Total (C)
|
2000
|
24000
|
|
Net Salary (A-C)
|
74694
|
896324
|
My payslip of may 2017 below, my employer "forgot" to include my declarations so full tax got deducted:
My payslip of june 2017 below, declared 98000 as yearly HRA and 15000 as yearly medical in the declaration form:
My questions:
- Is the tax calculation correct inclduing the 98000 HRA declaration? I cannot see medical excemption even though I declared 15000 of it.
- Notice the "Profession Tax" increasing every month, I thought profession tax is fixed at 200 but its 350 for may, 550 for june and for july they deducted 750.
- My PF account is getting credited with 2300 but as per my undestanding, total contribution from both employer and employee is 3600 so 3600 should get credited.
I can't help but feel the deductions are not calculated properly and there are additional hidden deductions (like the professional tax increasing every month), so please help me out.
CAclubindia
