Apart from the basic salary, many types of allowances are mentioned in the salary slip. Whenever you change jobs, your salary slip is also asked in another company because your package is decided on the basis of this. Therefore, you must know some things related to salary slip.
If you have got a new job, then after the salary you will also get a salary slip. Salary slip contains complete details related to your salary. Whenever you change jobs, your salary slip is also asked in another company because your package is decided on the basis of this. Apart from the basic salary, many types of allowances are mentioned in the salary slip. If you have any confusion regarding these, you can clear them here. Know which things are mentioned in your salary slip.
Basic salary
The most important part in the salary slip is your basic salary because all the benefits are given to you on the basis of basic salary only. Basic salary can be 35 to 50 percent of your total salary. This money is taxable.
House rent allowance
House rent allowance is given according to your basic salary only. You can be given 40 to 50 percent of your basic salary as HRA. This is a major taxable component of the salary slip.
Dearness allowance
Dearness allowance varies according to your basic salary. But as soon as the dearness allowance reaches 50 percent, it is reduced to zero and the money that the employees would be getting as allowance as per 50 percent is added to the basic salary i.e. minimum salary.
Conveyance allowance
The company gives you conveyance allowance when you travel for some company work. The money you spend in this, you get by adding it to your cash in hand salary. This means that if you get Conveyance Allowance up to Rs 1,600, you will not have to pay tax on it.
Leave travel allowance
Leave Travel Allowance which is often called LTA. Under LTA, the companies reimburse the expenses incurred by the employees and their families on traveling somewhere in the country. The money received in LTA is tax free. The amount of Leave Travel Allowance is decided by the HR and Finance Department of your company according to your rank and post.
Medical allowance
The employer gives medical allowance to his employee as payment for medical expenses during service. But you get this allowance in lieu of bill. That means you have to give the receipt of your medical expenses as proof. From tax point of view, annual medical bills of Rs 15,000 are tax free.
Special allowance
Special allowance is a kind of reward, which is given to motivate the employee. But all companies have different performance policies. Whereas it is completely taxable.
Performance bonus
Variable Pay and Performance Bonus depend on the work performance of the employees. On the basis of your performance while working in the company, you are paid monthly, quarterly and annual bonus or on target variables. The employer decides how much bonus you will be given.
Provident Fund
Provident fund is deducted from your salary every month. This is 12 percent of your basic salary and DA. Apart from this, the same amount is also deposited in your account by the employer.
Professional tax
In this, some part of your salary is deducted according to your tax slab. This is an indirect tax. It is valid only in Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Odisha, Tripura, Jharkhand, Bihar and Madhya Pradesh.
