a very serious blog about salary.
hehehehehehhehehehehe
In the old and new times, when a person used to be an employee, he earned more than just basic salary, there was dearness allowances, commissions, gratuity, provident fund,bonus, advance salary,perquisites, all i am saying is there were a whole lot of things to take care of.
Things that doesn't come inside your head that easily.
and that's why the likes of me use this secret technique passed down by generations to memorise stuff. get it done. get it together. your know how it works.
STEP 1- NOW LET ME READ SOME PAGES, THEN I WILL COME BACK AND SUMMARISE IT HERE. I MAY MAKE MISTAKES, BUT ITS ALL PART OF THE PROCESS.
1. some basics of salary is that
- taxable when due or receipt whichever is earlier.
- relationship b/w employer and employee, whether part time or full time doesn't matter.
----- advance salary is taxable when receipt, not again at accrual.
- salary to mp and mla not taxable under head salary
- surrender of salary to CG is not treated as salary.
- advance against salary is not treated under head salary. it's a type of loan.
- forgoing of salary is taxable.
- is employer paid tax, salary +tax is taxable salary.
that last point was confusing. took some time for me to make sense.
I guess that sum's up 1st page. let me+--+ check.
let's continue.
now let's jump into the salary components.
i will try to write as short as possible.
1.basic salary. fully taxable. easy.
2. dearness allowances.- 2 types. in terms and not in terms. both fully taxable. DON'T REMEMBER THE DIFFERENCE
3. commision-, turnover commission. fully taxable. one point is that in almost all formal only turnover commission is considered.
4. BONUS- taxable when receipt, not due.
5. Advanced salary- taxable receipt or due w.e. earlier.
6. Gratuity- received during employment, you are fucked, fully taxable. whend CG EE OR NOT.
at retirement, if CG EE- EXEMPT. IF NOT. THEN IF POGA ACT.- 15/26*NO.OF YEARS OF SERVICE(NORMAL ROUNDOFF* SALARY P.M.)*SALARYPM.
ACTUAL AMOUNT RECEIVED
20 LAKHS
OFCOURSE, W.E. LOWER.
IF NOT COVERED IN POGA ACT- 1/2*SALARY P.M.*NO. OF YEARS OF COMPLETION OF SERVICE.(IGNORE MONTHS)
IN FIRST CASE- SALARY P.M. IS LAST BASIC P.M.+LASTES DA
IN SECONDE CASE- AVG. OF LAST 10 MONTHS SALARY+ AVG. DA OF LAST 1O MONTHS+ AV.TO COMM. OF LAST 10 MONTHS.
7. PENSION- I DON'T REMEMBER MUCH ABOUT PENSION. LET ME THINK, BEFORE SEEING THE BOOK. I REMEMBER THERE WAS SOMETHING LIKE 1/3 IF GRATUITY RECEIVED AND 1/2 IF DON'T. LET ME SEE NOW. NOT IN CG EE THOUGH. SAME AS GRATUITY. OK. I WAS RIGHT.
POINTING OUT THAT FULL PENSION = COMMUTED+UNCOMMUTED. USED IN FINDING EXEMPT AMOUNT.I WILL DO A QUESTIONS AND CLEAR MY DOUBT.
THE EXEMPTION IS CALCULATED ON FULL PENSIONA AMOUNT BUT REDUCED FROM THE COMMUTED PENSION. HOO HAA.
7 POINTS COVERED, WHAT'S NEXT. THAT WAS FAST.
AHH LEAVE SALARY.IT'S MORE INFORMATION ONE. THOSE KIND SUCKS. BUT ITS MAKE ME WANT TO KILL IT EVEN MORE. IMMA KILLAA.
LET'S GOO.
SINCE I DON'T REMEMBER MUCH ABOUT LEAVE SALARY, LET ME THINK
I MUST SAY, SUBJECT OF TAX IS ONE BORING PEICE OF SHIT INVENTED BY US HUMANS. I AM TAKING A BREAK.
LEAVE SALARY, WHILE EMPLOYED ENCASHMENT, NO EXEMPTION.
AFTER RETIREMENT. THE CREDIT, UNUSED LEAVE YOU CAN ENCASH AND WILL GET EXEMPTION.
SHOULD WE CONTINUE. OR SHOULD WE MAKE SOME COFFEE. SOME HOT HOT LESS SUGAR COFFEE. I LIKE IT LIKE THAT.
25 L, AAR, 10M*AVGSALPM, LEAVE CREDIT(IN MONTHS?)*SALARYPMAVG
9. ALLOWANCES. NOW LET'S GET FAST, I WANT TO JUMP TO QUESTIONS ANY MOMENT NOW. I SEEM TO GET HANG OF IT. AND THEN SALARY FINISH. LAW STARTS. 1 HR JOB. THEN AGAIN PGBP BLOG INCOMING.
I'M A BUSY MAN.
THERE WAS A STORY. LET ME SEE.
OK, DUE TO TIME, i AM SKIPPING WRITING THE REST OF IT HERE. I WILL WRITE IT ANYTIME ELSE.... GOODBYE. TIME TO FLY.
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