{"id":41,"date":"2021-03-21T18:18:44","date_gmt":"2021-03-21T18:18:44","guid":{"rendered":"https:\/\/finaxone.com\/r\/?page_id=41"},"modified":"2021-03-21T18:20:58","modified_gmt":"2021-03-21T18:20:58","slug":"payroll-calculator","status":"publish","type":"page","link":"https:\/\/finaxone.com\/r\/payroll-calculator\/","title":{"rendered":"Payroll Calculator"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">HOW TO CALCULATE PAYROLL ?<\/h3>\n\n\n\n<p>Payroll calculations are usually computed on 4 main components \u2013 Basic pay, Allowances, Deductions, and IT Declarations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gross Pay<\/h3>\n\n\n\n<p>Gross Pay is the sum of Basic pay + Allowances.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Net Pay<\/h3>\n\n\n\n<p>Net Pay is the difference between Gross Pay \u2013 (Deductions + Total TDS). Total TDS is the sum of TDS, Surcharge, Health &amp; Education Cess.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Basic Pay<\/h3>\n\n\n\n<p>Basic Pay is 50% of Gross salary (Gross * 0.5)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">HRA<\/h3>\n\n\n\n<p>The amount received as the HRA from the employer. Actual rent paid less 10% of the basic salary and 50% of the basic salary if staying in a metro city and 40% in a non-metro city.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Provident Fund<\/h3>\n\n\n\n<p>PF deduction(Provident Fund) is&nbsp; calculated on 12% of Basic + PF applicable allowances or 15,000, which ever is lower<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee State Insurance<\/h3>\n\n\n\n<p>ESI is calculated on&nbsp; 0.75% of \u2013 Gross Pay (Basic and LOP dependent allowances) or 21,000, whichever is lower<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rules for calculating payroll taxes<\/h3>\n\n\n\n<p><strong>FY (2019 \u2013 2020)<\/strong><\/p>\n\n\n\n<ul><li><strong>Income Tax formula for FY (2019 \u2013 2020) =&nbsp;<\/strong>(Basic + Allowances \u2013 Deductions) * 12 \u2013 (IT Declarations + Standard deduction)&nbsp;<\/li><li>Deductions are the sum of PF, ESI, and PT etc.<\/li><li>TDS is calculated on (Basic + Allowances \u2013 Deductions) * 12 \u2013 (IT Declarations +&nbsp;Standard deduction)<\/li><li>Standard deduction (50,000)<\/li><\/ul>\n\n\n\n<p><strong>FY (2020 \u2013 2021)<\/strong><\/p>\n\n\n\n<ul><li><strong>Income Tax formula for FY (2020 \u2013 2021) =&nbsp;<\/strong>(Basic + Allowances \u2013 Deductions (ESI)) * 12 \u2013 (IT Declarations)<\/li><li>Only ESI is considered as a deduction.<\/li><li><strong>Exemptions for&nbsp; FY (2020 -2021)<\/strong><\/li><\/ul>\n\n\n\n<ol><li>Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)<\/li><li>Standard Deduction (50,000)<\/li><li>Interest on housing loan (Section 24)<\/li><li>House Rent Allowance<\/li><li>Profession Tax<\/li><li>Children Education Allowance<\/li><\/ol>\n\n\n\n<p>Note:&nbsp;The taxpayers has the option to either continue with the FY (2019-2020) tax rates, and exemptions or opt for the FY (2020 \u2013 2021) with lower tax rates by forgoing tax exemptions and deductions.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HOW TO CALCULATE PAYROLL ? Payroll calculations are usually computed on 4 main components \u2013 Basic pay, Allowances, Deductions, and IT Declarations. Gross Pay Gross Pay is the sum of Basic pay + Allowances. Net Pay Net Pay is the difference between Gross Pay \u2013 (Deductions + Total TDS). Total TDS is the sum of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/pages\/41"}],"collection":[{"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/comments?post=41"}],"version-history":[{"count":2,"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/pages\/41\/revisions"}],"predecessor-version":[{"id":57,"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/pages\/41\/revisions\/57"}],"wp:attachment":[{"href":"https:\/\/finaxone.com\/r\/wp-json\/wp\/v2\/media?parent=41"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}