salary induction

Payroll Team

Payroll

KPIT Technologies Limited

Introduction

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Payroll

Part of Corporate HR (TDG)

SDB-I Wing -A Level- 3

9 members

Team

14 Countries

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Salary Structure

Fixed

Monthly Pay

One Time Pay Fixed

Monthly Deduction

Statutory Mandatory

Monthly Deduction


How to save salary from Tax?

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Employee Services >> Employee Requisitions & HR Services >> ER & HRS Home >> Flexi Restructuring

Salary Components Exemption Amount

(Per Annum) Exemption Criteria

Sodexo Coupon

Either Up to 26,400

or 13,200

Convert Sodexo Allowance to Sodexo Coupon

Professional Development

Up to 50,000

Reduce Additional Allowance and Increase Professional Development (Exemption to the value of books & Higher Education Fees)

Children Education Allowance

1,200

2,400

If 1 School going child If 2 School going children ( Submit School Admission Proof)

Leave Travel Allowance

Up to 50,000 (Grade specific)

1) Air Fare (Airport to Airport) 2) First A/c Train Fare (Station to Station) 3) Cab usage (Fare not more than First A/C Train Fare )

RESTRUCTURING and EXEMPTION



EXEMPTION

Components Exemption Amount (Per Annum)

Exemption Criteria

Conveyance Allowance

9,600

Exempted by default to all employees

House Rent Allowance

Least of 1, 2 & 3

1) Housing Rent Allowance received 2) Rent paid 3) Rent paid Minus 10% of Basic

Medical Reimbursement

15000

Submit Original Medical Bills (Bills can be in the name of Self, Spouse, Children and dependents)

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Employee Services >> Employee Requisitions & HR Services >> ER & HRS Home >> Flexi Restructuring



Instruments Exemption Criteria (Per Annum)

1) Provident Fund 2) Voluntary Provident Fund 3) Public Provident Fund

1) 12% of Basic Salary (Mandatory Investment) 2) 6% or 12% as requested by the staff member 3) Actual Investment

4) NSC 5) Equity Link Saving Scheme (ELSS) 6) Life Insurance 7) Postal Savings 8) Term Deposits 9) Home Loan Principal 10) Pension Schemes

Actual Investment

11) Children Tuition Fee Tuition Fee only

INVESTMENTS (80C)

Up to Rs. 1 Lac



MEDICAL EXPENSES

Components Exemption Amount. (Per Annum)

Exemption Criteria

MediClaim Policy (Health Insurance) (80D)

15,000

30,000

35,000

Self, Spouse & Children Self, Spouse, Children & Dependent Parent(s) Self, Spouse, Children & Dependent Parent(s) aged 60 and above

Medical Expenditure on special disease (80DDB)

40,000

60,000

(Self or Dependents) Senior citizen (Self or Dependents) (certified by Govt. Physician)

Permanent Physical Disability (80DD)

50,000

1,00,000

If disability 80% (Disability as certified by Govt. Physician)



Components Exemption Amount.


Self Occupied Up to 1,50,000

Pre EMI interest can be claimed in 5 equal instalments after possession of the house.

Let Out Full Interest

Less Rent Earned

INTEREST ON HOME LOAN



Component Exemption Amount .


Interest Paid No limit

Loan taken for the purpose of higher education to pursue after senior higher secondary course Loan repayment should be by the employee only Loan can be taken on employee, spouse, Children and to student to whom the employee is legal guardian. The higher education not necessarily be pursued in India

INTEREST ON HIGHER STUDIES



Tax Exemptions Exemption Amount.


Professional Tax

2,500

2,400

If employed at Maharashtra If employed at other states

PROFESSIONAL TAX



House Rent Allowance 1,84,140 36,828 147,312 (Based on Rent Receipt)

Conveyance 9,600 Nil 9,600 (Standard tax exemption)

Medical Allowance 15,000 Nil 15,000 (Based on medical bills)

Professional Development 50,004 Nil 50,004 (Based on receipts)

Sodexo Allowance 26,400 Nil 26,400 (If Sodexo Coupon opted)

Earnings Yearly Taxable Non-Taxable

Basic 3,68,280 3,68,280 Fully Taxable

India Allowance 1,46,940 1,46,940 Fully Taxable

Monthly Bonus 73,656 73,656 Fully Taxable

Additional Allowance 4,40,556 4,40,556 Fully Taxable

Total Income 1,321,576 10,73,260 -2,48,316

EXEMPTIONS

Professional Tax -2,500

Income after Exemptions 10,70,760

LTA 7,000 7,000



INVESTMENTS AND EXPENSES

Income after Exemptions 10,70,760

PF deducted from salary -44194 12% on basic salary

Investments -55806 Rs.1 Lac Less PF deductions

Housing Loan Interest -150000 Interest on Self Occupied Property

Children Education Allowance -2400 Two school going children

Health Insurance for family -15000 Mediclaim Policy (Self, Spouse & 2 children)

Health Insurance for parents (>=60 years) -20000 Mediclaim Policy

Permanent Disability - Dependents -100000 Disability certified by Govt. Physician

Special Disease -40000 Special disease certified by Govt. Physician

Interest paid on higher studies -8000 8% interest on Rs.1 Lac loan taken for higher studies

LTA -7000 Train charges for self, spouse and two children

Investment on RGELSS -25000 50% of Rs.50,000 investment on RGELSS

Income after Investments and Expenses 6,03,360

ANNUAL TAXABLE INCOME 6,03,360

-467,400


Add: Education Cess: 3% of the Income-tax.

Payroll statutory Deductions:

Income Tax Rates & Slabs

Annual Taxable Income Tax Slab

2,00,000 5,00,000 (First Three Lacs)

10% of amount

5,00,001 10,000,00 (Next Five Lacs)

Rs.30,000 + 20% of the amount

>=10,00,001 (More than Eight Lacs)

Rs.1,30,000

+ 30% of the amount

Note: If annual taxable income is up to 5 lakhs, a tax waiver Rs.2000 is allowed -2,000

Annual Taxable Income

6,03,360

3,00,000

1,03,360

Income Tax

30,000

20,672

50,672 4,03,360

1,520

Total

Total Tax 52,192

Annual Tax Levied 50,192


Payroll Statutory Deductions

Provident Fund (PF) Voluntary Provident Fund (VPF) (Optional) Employee State Insurance Contribution (ESIC) Professional Tax (PT) and Income Tax


Employee Employer

Provident Fund Pension Fund

12% of Basic

Least of

Rs.541 Or

8.33%

on Basic

3.67% Of Basic

Payroll Statutory Deductions: Provident Fund


Payroll Statutory Deductions: VPF, ESIC & PT

Voluntary Provident Fund (VPF)

A voluntary contribution by employee, fully tax free.

Contribution an either be 6% or 12% to deduct from the monthly salary

No Employer contribution

Please write to [email protected] if you wish to opt VPF contribution from salary deduction

Employee State Insurance Contribution

ESIC stands for Employee State Insurance Contribution

If Monthly fixed gross salary is = Rs.10,000.

For Maharashtra , Rs.200 deducted every month and Rs.300 in February


Help Desk

PF :

PAYROLL: Extension: 2873

Portal: Employee Services >> Employee Requisitions & HR Services >> General Services >> Salary Issues

E-mail [email protected]

VPF deduction request [email protected]

www.kpit.com

Thank you

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