Statutory Compliance:
Firstly let's understand about the Statutory Compliance!!
These are the compliance that are designed by various statutory authorities which are meant to be religiously followed by an organization/s registered under the companies act in a systematic way by which they(govt.) gets taxes /revenue.
Statutory means "Laws and Regulations" Compliance means "adhere to" or "Obey". There are many such statutory requirements which an organization must adhere to.
Some of those rules and regulations that are primarily important are Income Tax,Value Added Tax,Partnership tax, PF and ESIC.
let us know about what does Salary mean:
There are three types of salaries and they are Gross Salary and Net salary.
Net Salary:
India follows one of the highest ‘salary confiscation’ models in the world, i.e, labor laws in India require the highest salary deductions in the world for low wage employees. In the current cost-to-company model followed in India, informal employees can take home their entire salary as opposed to employees in the organised sector who “lose” a part of their earnings to various schemes such as Employees Pension Scheme, Employees State Insurance (ESI), Provident Fund, Professional Tax and gratuity.
Net salary is the take home salary by the employee after all the deductions of Statutory Compliance ex. tax, PF,ESIC.
Gross Salary:
It is total salary before deductions i.e. before Statutory Compliance is deducted.
CTC(Cost to Company):
Cost to Company is the amount that an employer will spend on an employee in a particular year.
The difference between all these three components is:
CTC is the total amount spent on the employee by the employer, i.e. It includes Employer's contribution along with employee's components.
Gross Salary is the amount of salary received before any deductions are made.
Net Salary: Salary received by the employee after the deductions of Statutory Compliance
CTC or cost to company = Gross Salary+PF+ESIC+Leave Pay+Gratuity. Gross salary includes both taxable and nontaxable income. It is, therefore, the sum of components prior to deductions.
TDS: Tax deducted at source which is applicable for businesses and employees, HR Department or Finance department in the Organization holds responsibility of collecting a percentage of TDS from employees and sent to central government periodically.taxes are generally levied on the citizens to generate income for the projects undertaken that helps in boosting the economy of the country.
Firstly let's understand about the Statutory Compliance!!
These are the compliance that are designed by various statutory authorities which are meant to be religiously followed by an organization/s registered under the companies act in a systematic way by which they(govt.) gets taxes /revenue.
Statutory means "Laws and Regulations" Compliance means "adhere to" or "Obey". There are many such statutory requirements which an organization must adhere to.
Some of those rules and regulations that are primarily important are Income Tax,Value Added Tax,Partnership tax, PF and ESIC.
let us know about what does Salary mean:
The word ‘salary’ originates from the Latin word 'salarium'. It was the quota of salt given to Roman soldiers in addition to their pay.Salary is a remuneration given to a person periodically for rendering his services to an Organization based on the contract he is bounded with.Person who takes the service and pays is called an Employer and person who renders services and takes salary is called Employee, both are bounded with many rules and regulations.
Salary can be termed into multiple words based on the period of time the person is getting paid.
For example if a person is getting paid on daily basis it is called daily wage.
Some of such terms are Commission,Pension,Annuity,Gratuity etc.
It is an indicator of your position, growth and success in the company and will, in many cases, determine the course of your career.Salary can be termed into multiple words based on the period of time the person is getting paid.
For example if a person is getting paid on daily basis it is called daily wage.
Some of such terms are Commission,Pension,Annuity,Gratuity etc.
There are three types of salaries and they are Gross Salary and Net salary.
Net Salary:
India follows one of the highest ‘salary confiscation’ models in the world, i.e, labor laws in India require the highest salary deductions in the world for low wage employees. In the current cost-to-company model followed in India, informal employees can take home their entire salary as opposed to employees in the organised sector who “lose” a part of their earnings to various schemes such as Employees Pension Scheme, Employees State Insurance (ESI), Provident Fund, Professional Tax and gratuity.
Net salary is the take home salary by the employee after all the deductions of Statutory Compliance ex. tax, PF,ESIC.
Gross Salary:
It is total salary before deductions i.e. before Statutory Compliance is deducted.
CTC(Cost to Company):
Cost to Company is the amount that an employer will spend on an employee in a particular year.
The difference between all these three components is:
CTC is the total amount spent on the employee by the employer, i.e. It includes Employer's contribution along with employee's components.
Gross Salary is the amount of salary received before any deductions are made.
Net Salary: Salary received by the employee after the deductions of Statutory Compliance
CTC or cost to company = Gross Salary+PF+ESIC+Leave Pay+Gratuity. Gross salary includes both taxable and nontaxable income. It is, therefore, the sum of components prior to deductions.
Gross salary may include the following:-
- · Basic Salary· Dearness Allowance· House Rent Allowance· Conveyance Allowance· Medical Reimbursement Allowance· City Compensatory Allowance· Performance Incentives· Leave Travel Allowance· Food AllowanceAny Other Allowance depending upon the company Certain deductions are made from your salary as listed below:· Employee PF Contribution of 12%· Employee ESIC Contribution· Professional Tax (state-specific)· Income Tax
When the aforementioned deductions are made from the Gross Salary, the remaining amount is known as Net Salary. It is the take home salary of the employee.
Net Salary = Basic + Additions (bonuses, allowances) – Deductions.
What is TDS?Net Salary = Basic + Additions (bonuses, allowances) – Deductions.
TDS: Tax deducted at source which is applicable for businesses and employees, HR Department or Finance department in the Organization holds responsibility of collecting a percentage of TDS from employees and sent to central government periodically.taxes are generally levied on the citizens to generate income for the projects undertaken that helps in boosting the economy of the country.
The types of payments includes salary,rent,fees,interest,commission etc.
There are two types of Taxes:
Direct tax
Indirect tax
But, besides these two conventional taxes, there are also other taxes that have been brought into effect by the Central Government to serve a particular agenda. ‘Other taxes’ are levied on both direct and indirect taxes such as the recently introduced Swachh Bharat Cess tax, Krishi Kalyan Cess tax, and infrastructure Cess tax among others.
Direct tax:
Direct tax, as stated earlier, are taxes that are paid directly by you. These taxes are levied directly on an entity or an individual and cannot be transferred onto anyone else. One of the bodies that overlooks these direct taxes is the Central Board of Direct Taxes (CBDT) which is a part of the Department of Revenue. It has, to help it with its duties, the support of various acts that govern various aspects of direct taxes.
some of the direct taxes are Income tax,Wealth tax,
New tax slabs for FY 2017-18 are
There are two types of Taxes:
Direct tax
Indirect tax
But, besides these two conventional taxes, there are also other taxes that have been brought into effect by the Central Government to serve a particular agenda. ‘Other taxes’ are levied on both direct and indirect taxes such as the recently introduced Swachh Bharat Cess tax, Krishi Kalyan Cess tax, and infrastructure Cess tax among others.
Direct tax:
Direct tax, as stated earlier, are taxes that are paid directly by you. These taxes are levied directly on an entity or an individual and cannot be transferred onto anyone else. One of the bodies that overlooks these direct taxes is the Central Board of Direct Taxes (CBDT) which is a part of the Department of Revenue. It has, to help it with its duties, the support of various acts that govern various aspects of direct taxes.
some of the direct taxes are Income tax,Wealth tax,
New tax slabs for FY 2017-18 are
Slots
|
Percentage
|
Income up toRs.2,50,000* |
No Tax
|
Income from Rs. 2,50,000 – Rs.
5,00,000
|
5%
|
Income from Rs. 5,00,000 –
10,00,000
|
20%
|
Income more than Rs. 10,00,000
|
30%
|
Surcharge: 10% of income tax,
where total income between Rs. 50 lakhs and Rs.1 crore. 15% of income
tax, where total income exceeds Rs. 1 crore.
|
|
Cess: 3% on total of income tax +
surcharge.
|
|
* Income up to Rs. 2,50,000 is
exempt from tax if you are less than 60 years old.
|
|
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