About my Salary Tax and EPF Deduction

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Hi, Ecxatly i have more quetions about my salary tax and PF deduction, my current CTC is 252000 INR and i wanted to know about the tax deduction and PF deduction. here i have certain questions: 1: if my current CTC is 252000 INR, so i am responsible about the deduction of PF force fully by my employer? 2: What will the tax deduction actual figure as per my current CTC? 3: if any one not in the range of tax deduction, employer able to deduct his tax or not? 4: if it is deducted by the employer then government will provide form 16 to employee on not? 5: how many tax are payble for normal indian employee like me?

please provide me answers for all these quetion so i can do something better for me. looking for a kind reply...

1 Answers
  1. EPF is mandatory if person's basic salary is below Rs 6500. Above it its not mandatory for employee. But some of the employer make it compulsory for all employees.
  2. Tax cannot be computed by looking inot just CTC figure as it may have different non-taxable components like medical reimbursements, EPF deduction, LTA, HRA etc. Please use excel based income tax calculator to compute income tax based on your salary components.
  3. If your total taxable income is below 2 lakh in FY 2012-13, employer won't deduct any taxes.
  4. If taxes are deducted by employer from salary, they would issue form-16 after end of financial year.
  5. There are different tax slabs: Upto Rs. 2,00,000 taxable income: Nil tax, Rs. 2,00,001 to Rs. 5,00,000: 10 per cent, Rs. 5,00,001 to Rs. 10,00,000: 20 per cent, Above Rs. 10,00,000: 30 per cent

Pankaj,

Thanks for your reply, but i am working currently in MNC, so how can this possible they will deduct my EPF if my basic salary is 10500 INR?

please give me response on this email.

also i just checked my EPF account and it showing that your balance till 2/08/2012 is 147 INR. and before my incremant in salary my basic salary was 5000 INR.

please help me out from this, so i can do something better for my future.

Deducting EPF is not mandatory if basic salary is above Rs 6500 per month, it does not mean they cannot deduct EPF. Every employer has its own rules.

Pankaj,

As per government rule they can deduct the EPF if they pay Employer+Employee = EPF+interest. but here they are paying as like Employee = EPF+interest on this.

So i have some better plans in the market instead of this. so can i request them that don't deduct my EPF.

let me know about that please.

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