If you think that your entire salary is taxable, then that is not true. The overall package, which is termed CTC, comprises many Management Allowance. While calculating taxes, employees must know which allowance in the salary slip is actually taxable. allowances
- While calculating taxes, employees must know which allowance in the salary slip is actually taxable because there are certain other Management Allowance that may be tax-free or fully or partially exempted in the hands of an employee.
- Here are ten components that you generally see in your salary slip. But do not know the various tax implications occurring on the overall package. One should be aware of the exact taxable salary which he/she is drawing from one’s respective employer.
- Your salary is divide into various components, Basic salary is one of the important components of a salary because various other components are dependent on it in terms of percentage or the other. It is a fixed component in your payslip and forms the basic part of the salary.
- It forms a large portion of your total annual salary. HRA is mostly calculated as 40% /50% of the basic salary whereas PF is calculated at 12% of the basic salary.