Income Tax : - Tips to reduce the Taxable Salary

In the interest of employee, some tips are given below.   All tips can not apply on all employees.  It depends upon circumstances what type of facility is given by your employer. 

What does, however, ‘salary’ include? Salary includes basic salary, bonus, wages, pension, fees, commission, gratuity, encashment of leave salary, advances and arrears, profits in lieu of salary, allowances and perquisites.  Salary income is taxable in the hands of an individual in the year of receipt or earning of salary income, whichever is earlier. Here are some of the safe components of your salary structure which can minimse your tax burden and help you plan your Salary Structure –

Income Tax :- New Pan Application Form 49A - Tds Tax India

Income Tax :- New Pan Application Form 49A - Tds Tax India

Difference between 'Medical Benefit' & 'sickness benefit'

Medical benefit may be given in the form of outpatient treatment or attendance in a dispensary or clinic and sickness benefit requires the employee to be hospitalised and remain under the supervision of a medical officer.

Over time and compensatory off

Sub- Over time and compensatory off

1) Over time is what you pay to an employee/workman for working beyond 9 hours per day or 48 hours per week as stipulated under Labour laws like Factories Act or Shops Act or Minimum Wages Act or for working beyond the contracted hours of work under a settlement or contract of service.

Compensatory off is what you permit an employee who works on a weekly off or holiday to take off on any of the following working day as laid down under relevant labour laws and thus no over time is payable when compensatory off is granted.

2) In my opinion, you should pay wages proportionately for the work done for half a day on the principle of equal pay for equal work and also in view of some legal provisionsin acts like the Payment of Wages Act etc. prohibiting unauthorised withholding of wages of employees.