Salary clarification

Tax planning 556 views 3 replies

Hi,

1. while preparing salary for employee's which type of deduction s are allowed in Exemption and Deductions.

can anyone send me actual income tax computation for the Financial year 2014-15.

2. What documents are needs to be taken from employees  for

   Rent

   LIC premium

   Tution Fees

   PPF a/c

Replies (3)

Dear Kapil, main deductions are of -children education allowance, medical reimbursement, conveyance allowance.

You should take undertaking from employees regarding their investments in starting of the year.

For rent ask for rent receipts properly signed from landlord.

for LIC premium, ask for premium receipt( online  statement is also sufficient)

For tuition fees consider the fees slips properly signed.

For PPF, take the PPF receipt.

all these four deductions ares on paid basis.

Some companies asking to submit landlord's pan copy, if the rent per month exceeds Rs.8500 per month. 

Agree with sathiyaram......

if the rent paid in a financial year is more than 1,00,000/- (ie.8300/- per month) then the employee has to submit landlord's PAN or rent agreement. In absence of both an undertaking will also suffice.


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