Salary format for assessment year 20 - 21

format for calculating salary income for the assessment year 20 - 21

1. B.Com PA – Sri Ramakrishna College of Arts and Science Page 1


Salary XXX
Dearness Allowance XXX
Bonus XXX
Commission XXX
Employers contribution to Provident fund
a) Statutory Provident Fund

b) Recognized Provident Fund
Less: 12% of the Salary
Salary = Basic Salary + Dearness
Allowance ( enters into service benefits)
+ Commission on Turnover

c) Unrecognized Provident Fund




XXX
XXX

Exempted


XXX




Ignored
Interest credited to Provident fund

a) Statutory Provident Fund

b) Recognized Provident Fund
Less: Upto 9.5% of interest rate

c) Unrecognized Provident Fund





XXX
XXX



Exempted


XXX

Ignored
Fully taxable Allowance
a) City Compensatory Allowance
b) Fixed Medical Allowance,
Lunch Allowance,
Project Allowance,
Over Time allowance
c) Entertainment Allowance










XXX


XXX
XXX

Format for calculating Salary Income

2. B.Com PA – Sri Ramakrishna College of Arts and Science Page 2

Partly Taxable Allowance
a) House rent allowance
Least of the following is exempted
i) 40/50 % of Salary ii)
Actual iii) Rent paid –
10% of Salary
Salary = Basic Salary + Dearness
Allowance ( enters into service benefits)
+ Commission on Turnover

b) Uniform allowance, Academic Research
allowance, Helper allowance, conveyance
allowance
Less : Actual expenditure for official
purpose



XXX
XXX
XXX








XXX



XXX






XXX

XXX





XXX








XXX
c) Children Educational allowance
Less: Rs.100 pm Per child

d) Hostel Education allowance Less
: Rs.300 pm per child

XXX
XXX

XXX
XXX

XXX


XXX
Exempted Perquisites

a) reimbursement of medical bill
Govt. hospital / hospital owned by
employer
-- fully exempted
Private hospitals - fully taxable


b) Interest free loan
Loan upto Rs.20000 – fully exempted
Interest rate of SBI is taxable if loan
Amount is more than Rs.20000

d) Free Education
Rs.1000 pm per child









XXX



XXX


XXX

3. B.Com PA – Sri Ramakrishna College of Arts and Science Page 3

Taxable Perquisites:

a) Rent free accomadation
(i) Govt Employee – License fee
(ii) Private Employee
I) owned by employer

a)Population more than 25 lakhs
15% of Salary
b) Population between 10 lakhs to
25 lakhs - 10% of salary
c)Population less than 10 lakhs
7.5% of Salary
II) Hired by employer
15% of Salary or
Actual Hire Charges
Which ever is less
Salary = Basic Salary + Dearness
Allowance ( enters into service benefits) +
Commission of all types + Bonus +
Taxable Part of all allowances

Add: 10% cost of furnishing
And actual hire charge of furniture


b) Any obligation of employee met by
employer

c) Free Servants employed by employee and
paid by employer

d) Life insurance premium paid by employer




















XXX






XXX
























XXX



XXX


XXX

XXX

4. B.Com PA – Sri Ramakrishna College of Arts and Science Page 4


Perquisites taxable for Specified Employee
Specified employee
a) Monetary benefit more than Rs.50000
b) Holding 20% of voting rights
c) Director of a company


a) Free gas, water , Electricity
b) Free servants appointed by employer and
Paid by employer
c) Car used partly for official and partly for
private purpose:
Less than 1.6 lt – 1800 pm
More than 1.6 lt – 2400 pm
Driver – 900 pm


XXX
XXX
XXX
XXX
Profit in Lieu of Salary

a) Leave Travel concession
Less: Actual expenses

b) Gratuity
i) Death cum retirement Gratuity
ii) Gratuity under payment act 1972
Least of the following is exempted
i) 15 days salary for every completed year of
service
I ii) Actual gratuity
iii) Notified limit
Salary = Salary + DA
15 days salary = 15/26 x salary
iii) Gratuity received by others
i) ½ month average salary for every
completed year of service (ignore months)
ii) Actual gratuity
iii) Notified limit
Salary = Basic Salary + Dearness
Allowance ( enters into service benefits) +
Commission on Turnover
Avg Salary: Salary for preceding 10 months









XXX

XXX


20,00,000

XXX

XXX
20,00,000


XXX
XXX



XXX





XXX
XXX



XXX


XXX


Exempted





XXX






XXX

5. B.Com PA – Sri Ramakrishna College of Arts and Science Page 5



c) Commutation of pension
i) if he receives gratuity 1/3rd of the
pension from the commuted pension is
exempted

ii) if he does not receives gratuity 1/2
of the pension from the commuted pension
is exempted

d) Leave encashment
Least of the following is exempted
a) Actual
b) Average salary x 10
c) Notified limit
d) Average salary x number of leave in
balance













XXX
XXX
300000
XXX













XXX



XXX







XXX



XXX








XXX




GROSS SALARY XXX
Deduction u/s 16
16(1) Standard Deduction (actual or Rs.50000)
WEL
16 (2) Entertainment allowance
(applicable only for Govt employees)
Least of the following is exempted
a) 1/5 of basic salary
b) Actual
c) Notified limit = 5000

16(3) Professional tax paid (if any)





XXX
XXX
XXX

XXX




XXX

XXX


TAXABLE SALARY XXX