Table of Content
The contribution made by the employee towards the EPF is available for a deduction under Section 80C of the Income Tax Act, 1961. Employee contribution to the provident fund - Both you and your employer contribute 12% of your basic salary every month to the employee provident fund . This contribution towards the EPF is available for a deduction under Section 80C of the Income Tax Act, 1961. The amount left over after deducting gratuities and EPF from the CTC is referred to as gross salary.
You will be paid for your skill, experience and qualifications. Below are example salary illustrations including Income Tax and Medicare deductions. You can work out your annual salary and take home pay using the India salary calculator or look at typical earning by viewing one of the illustrations below. Yes, the professional tax and provident fund deductions are shown in the calculation. After that, you must subtract the annual professional tax from your gross salary.
Employee contribution to the provident fund (EPF)
Because pay calculations have so many variables, you’ll need to employ distinct formulae for each one. Your employer also makes a contribution to the EPF account in the same amount. At the time of retirement, you have the option of withdrawing the whole amount accrued.
Cost to the company components represents the overall compensation provided to an employee for working in a company. It is included in their take-home pay and is taxable as income. Employers often make sure that the basic pay doesn't account for more than 40% of the total CTC. Both the employer and the employee contribute 12% of the employee’s basic salary each month to the EPF or employee provident fund.
India 2013 Tax Calculator with 2013 Income Tax Slabs
As a salaried employee, you will be eligible to claim the LTA exemption under Section 10 of the Income Tax Act. The TDS is not calculated separately in the salary calculator. Your monthly take-home pay is the amount left over after all deductions have been deducted from your gross income.
To calculate the Cost to Company , enter the gross salary and total bonus amount. Buy medical insurance for your family and parents for upto ₹ 35,000/- and this amount will be exempt from income tax . Your CTC includes your variable pay, as the name indicates variable pay amount differs based on various factors. This will cause your CTC to vary, this will have a knock-on effect on your take home.
What are the Components of the Salary Structure?
The salary calculator is a simulation that calculates your take-home salary. It is the total salary an employee gets after all the necessary deductions. The salary calculator consists of a formula box, where you enter the Cost To Company and the bonus included in the CTC.
All monetary and nonmonetary advantages received by an employee are included in the cost to the firm. Purchase medical insurance for your family and parents for up to Rs. 35,000/-, which would be tax-free. EPF contributions are required to be paid at a rate of 12% of your basic income. Employers cover the costs of domestic travel for you and your family during a vacation.
How to use the Salary Calculator
That remains after considering deductions from gross salary. If you receive a bonus, the calculator displays how your salary structure will change. You become familiar with the advantages of a new remuneration plan. Your take-home salary will be calculated quickly using the salary calculator. In addition, you also have a yearly deduction of ₹ 3,000 towards employee insurance. This is a reimbursement offered by your employer for domestic travel while you are on vacation and is not taxable under the Income Tax Act of 1961.
You can correct his by adjusting your CTC to match the actual amounts in variable pay. For example, if your CTC is ₹ 15 Lakhs which includes a variable pay of ₹ 2 lakhs, however you only received ₹ 1 lakh as part of your variable pay for this financial year. In this case enter your CTC as ₹ 14 lakhs for accurate calculations. The total sum that a corporation spends on employing and keeping you on staff is called CTC.
The ClearTax Salary Calculator will calculate your take-home salary in seconds. We have listed the specific tax and finance terms used on the India Tax Calculator below.
To keep things simple, use Vakilsearch salary calculator online. In any professional setting, an employer pays employees a predetermined sum for their services at the end of each month. Usually, this sum is specified in the employee's contract and pay stub. Each of the numerous components of the pay can differ between employers. An employee must pay taxes on salary because it is a part of their yearly revenue.
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