Gross salary is the total of all the components of the salary offered to an employee. It includes the earnings before deductions such as TDS, PF, etc.
The ESI scheme applies to all factories and establishments where employee strength is 10 or more. It is a self-financed social security scheme designed to protect employees covered under the ESI act.
Professional tax is a direct tax that applies to individuals earning by way of employment or practising their profession. Explore more through this article.
Bonus is the extra money received by employees over their salary and is fully taxable. Bonus payouts are dependent on the profitability of the company and can be paid to employees based on individual performance or the company’s overall performance.
Form 12BB is a tax declaration form where an employee needs to mention all tax-saving investments made or to be made in the financial year and submit it to their employers. Employers consider such details for deducting income from employee’s salary.
Cost to Company (CTC) is the total cost that a company would incur on an employee in a year. This cost includes monetary and non-monetary amounts spent on an employee.
Dearness Allowance is calculated as a fixed % of basic salary & is completely taxable. This allowance is paid to the central government employees in India.
TDS Challan 281 is used to pay TDS by corporates and non-corporate businesses. There are 2 modes for making TDS payments – Online and offline mode.
Employee Provident Fund (EPF) registration is mandatory for an organisation where employee strength exceeds 20. For most employees, the contribution rate is 12% of the fixed wages of an employee, excluding HRA.
Section 194A of the Income Tax Act states that tax has to be deducted at source on interest (other than interest on securities).