- June 7, 2017
- Posted by: admin
- Category: Pay Roll
Payroll management, managing employee compensation and staffing solutions are the holistic processes. It is required to have a calculation involving taxes like government taxes which include social security and income taxes associated with each employee. And finally computing the salary is not cake’s walk. Along with that there are many organisation offering additional benefits related to health and compensation on the medical expenses, this also includes deductions of certain premiums and it can be said that salary of each and every person is customized and varies from the other employees. In order to give little more clarification on the same, this article focuses on the major allowances and deductions be it travel or housing, and few advantages of Staffing solutions services.
Allowances and its categories
If these portions on expenditures are within a specified limit and matches few of the specifications then it is a non- taxable category in India.
There are many allowances offered to an employee by a company. These can include house rent given according to the post of the employee as well as according to the class of city residing in, transportation cost, and medical expenses, expenses associated with daily meals, travel leaves, education allowances, and many special allowances as well.
When you get the house rent allowance from a company as an employee the amount which gets exempted from the taxes can be any one of the following the one which is lowest.
- 40 per cent of the salary in any non- metropolitan city as well as half or 50 per cent of the salary in a metropolitan city.
- Sum of the rent paid above 10 per cent of the salary
- House rent allowance (HRA) received
A transport allowance of approximately Rs 800 is given to the employees on daily basis to travel from their place of residence to work place and taxes are not applicable on this. For physically challenged employee this amount is equal to Rs 1,600. Payroll services Delhi or anywhere in India work to provide this.
Following are the points where the taxes are not applicable:-
- Compensation up to INR 15,000 for the treatment of self and family member.
- Compensation on expenses borne by employee and family only in the hospital which have tie up with the organisation.
- Premium paid on the medical insurance policies.
- Compensation on the premiums paid by the employee towards the premiums of the health insurance policies of the family members.
- Expenses borne by the family members or employee while rendering the medical treatment in abroad.
- Travel and housing cost borne by the family members as well as one attendant who is travelling along with the patient.
- Premiums paid for the group or family floater insurance policies of the family.
Apart from these allowances when you Outsource HR Services to India there are many more allowances like meal coupons, educational allowance, leave travel, uniform allowances, transportation expenses, etc.