#NEGATIVE INCOME AIRPORT CEO GAME PROFESSIONAL#
Different states have varying methods of calculating professional tax. Professional tax is a tax levied on the income earned by salaried employees and professionals, including chartered accountants, doctors and lawyers, etc. The contributions are maintained by the Employees Provident Fund Organization (EPFO). At least 12% of an employee’s basic salary is automatically deducted and goes to the Employee Provident Fund every month. It is a savings platform that aids employees to save a portion of their salary each month, from which withdrawals can be made following a month from the date of cessation of service or upon retirement. Most firms with a workforce of 10 or more employees come under the Act.Įmployee Provident Fund is an employee benefit scheme where investments are made by both the employer and the employee each month. According to the Payment of Gratuity Act, 1972, gratuity is calculated as 4.81% of the basic pay. The gratuity amount is paid in gratitude for the services rendered by the individual during the period of employment. This is only payable to those who have completed 5 or more years with the company. Gratuity is a lump sum benefit paid by employers to those employees who are retiring from the organization. It is tax exempt to the extent of actual expenditure incurred towards purchase of books and periodicals. 40,000 has been introduced in lieu of transport (Rs 19,200) and medical (Rs 15,000) allowances.īooks and Periodicals Allowance - Books and periodicals allowance is a type of allowance provided to employees for helping them meet the expenses associated with purchase of books, periodicals and newspapers. Note - In Union Budget 2018, a standard deduction of Rs. Medical Allowance - Medical allowance is a fixed allowance paid to the employees of an organization to meet their medical expenditure. Leave travel allowance only covers domestic travel and the mode of travel needs to be air, railway or public transport. The amount paid as leave travel allowance is exempt from tax under Section 10(5) of Income Tax Act, 1961. It is offered by employers to their employees to cover the latter's travel expense when he or she is on leave from work. Leave Travel Allowance - Leave travel allowance is eligible for tax exemption. 40,000 has been introduced in lieu of transport (Rs 19,200) and medical (Rs 15,000) allowances.
Salaried individuals residing in rented homes can claim this exemption and reduce their tax liability.Ĭonveyance Allowance - Conveyance allowance, also known as transport allowance, is a kind of allowance offered by employers to their employees to compensate for their travel expense to and from their residence and workplace. It offers tax benefits to the employees for the sum that they pay towards their accommodation every year. House Rent Allowance – A house rent allowance is that component of the salary which is paid to employees for meeting the cost of renting a home. It is paid by the government to employees of the public sector and pensioners of the same. Dearness Allowance - Dearness allowance is a certain percentage of the basic salary paid to employees, aimed at mitigating the impact of inflation.Allowances provided and the limits on it will differ from company to company, according to their policies. It can be partially or fully taxable, depending on what type it is. AllowancesĪllowance is an amount payable to employees during the course of their regular job duty. Most of the other components, like allowances, are based on the basic salary. Basic salary is determined based on the designation of the employee and the industry in which he or she works in. It is a fixed amount that is paid prior to any reductions or increases due to bonus, overtime or allowances. Some of the components of the salary structure include: Basic Salaryīasic salary is the base income of an employee, comprising of 35-50 % of the total salary.
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