Smt.Rama is an employee getting a montly salary of ₹10,000 plus a dearness allowance of ₹1,000 per month. She contributed 14% of her salary and dearness allowance to a Recognised Provident Fund to which her employer contributes an equal amount. Interest on provident Fund is determined @ 14% per annum which amounted to ₹ 4200 for the previous year. What is her taxable salary?
Answers
Answer:
Salary (CTC) calculation: Under CTC model, if the monthly EPF wages of an employee is Rs 10,000, then he/she will get Rs 200 more directly from the employer as the share of the employer's contribution to EPF/EPS will be reduced and Rs 200 less will be deducted from his/her wages
calculation: The recent announcements by the Government of India to provide relief during COVID-19 pandemic are expected to increase the take-home salary of employees for three months. The government has cut the mandatory EPF contribution by the employer and employee to 10 per cent each. As a result of this, the take-home salary of the employee will increase, benefitting around 4.3 crore employees/members and employers of 6.5 lakh establishments, according to the Employees Provident Fund Organisation (EPFO).
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