<fieldname="note">Rent receipts can be shown for taking tax benefit for living in a rented house.Income tax exemption for HRA will be least of following:
1. The actual amount of HRA received as a part of salary.
2. 40% (if living in non-metro area) or 50% (if living in metro area) of (basic salary+Dearness allowance (DA)).
'house_rent_income':fields.float('House Rent Income ',digits_compute=dp.get_precision('Payroll'),help="Income from house property."),
'saving_bank_account':fields.float('Saving Bank Account Income ',digits_compute=dp.get_precision('Payroll'),help="Saving income for bank account."),
'other_income':fields.float('Other Income ',digits_compute=dp.get_precision('Payroll'),help="Other income of employee."),
'short_term_gain':fields.float('Short Term Gain from Share Trading/Equity MFs ',digits_compute=dp.get_precision('Payroll'),help="Stocks/equity mutual funds are sold before one year."),
'long_term_gain':fields.float('Long Term Gain from Share Trading/Equity MFs',digits_compute=dp.get_precision('Payroll'),help="Stocks/equity mutual funds are kept for more than a year."),
'food_coupon_amount':fields.float('Food Coupons ',digits_compute=dp.get_precision('Payroll'),help="Amount of food coupon per day."),
'driver_salay':fields.boolean('Driver Salary',help=" Allowance for company provided driver."),
'professional_tax':fields.float('Professional Tax ',digits_compute=dp.get_precision('Payroll'),help="Professional tax deducted from salary"),
'leave_avail_dedution':fields.float('Leave Availed Deduction ',digits_compute=dp.get_precision('Payroll'),help="Deduction for emergency leave of employee."),
'medical_insurance':fields.float('Medical Insurance',digits_compute=dp.get_precision('Payroll'),help="Deduction towards company provided medical insurance."),
'voluntary_provident_fund':fields.float('Voluntary Provident Fund',digits_compute=dp.get_precision('Payroll'),help="VPF computed as percentage.(%)"),
'company_transport':fields.float('Company Provided Transport',digits_compute=dp.get_precision('Payroll'),help="Deduction for company provided transport."),
<fieldname="note">Covered under the Payment of Gratuity Act, 1971: (Last drawn monthly basic salary + dearness allowance)/26 x 15 days x number of years of service (date of joining – date of retirement/leaving job)
</field>
<fieldname="note">Covered under the Payment of Gratuity Act, 1971:
(Last drawn monthly basic salary + dearness allowance)/26 x 15 days x
number of years of service (date of joining – date of retirement/leaving job)</field>
<fieldname="note">As per Income tax rules of India, if transport bills for LTA are not provided,the amount will be taxed. E.g. If an employee has LTA allowance as Rs 50,000 in his CTC(cost to company),and he provides proofs of Rs 40,000 (boarding pass,air tickets, taxi vouchers) then income tax will be deducted for rest of the Rs 10,000. Does not matter whats the amount of LTA in an employee’s package, income tax laws only permits domestic air tickets only for LTA claim.</field>
<fieldname="note">Payment by way of leave encashment received by Central and State Govt.employees at the time of retirement in respect of the period of earned leave at credit is fully exempt. In case of other employees, the exemption is to be limited to minimum of all below:
1.The actual amount received
2.The cash equivalent of leave balance (max 30 days per year of service)
3.Maximum of 10 months of leave encashment, based on last 10 months average salary
<fieldname="note">This would be fully taxable based on incentive.</field>
</record>
@@ -145,8 +183,8 @@
<fieldname="name">Medical Reimbursement</field>
<fieldname="category_id"ref="hr_payroll.ALW"/>
<fieldname="amount_select">fix</field>
<fieldeval="2500.0"name="amount_fix"/>
<fieldname="sequence"eval="35"/>
<fieldeval="1200.0"name="amount_fix"/>
<fieldname="sequence"eval="32"/>
<fieldname="note">This component is on-taxable up to 15000 per year (or Rs 1250 per month) on producing medical bills.</field>
</record>
@@ -155,11 +193,9 @@
<fieldname="name">Periodical Journals</field>
<fieldname="category_id"ref="hr_payroll.ALW"/>
<fieldname="amount_select">fix</field>
<fieldeval="5000.0"name="amount_fix"/>
<fieldname="sequence"eval="36"/>
<fieldname="note">Some employers may provide component for buying magazines,
journals and books as a part of knowledge enhancement for business growth.
This part would become non taxable on providing original bills.</field>
<fieldeval="0.0"name="amount_fix"/>
<fieldname="sequence"eval="34"/>
<fieldname="note">Some employers may provide component for buying magazines, journals and books as a part of knowledge enhancement for business growth.This part would become non taxable on providing original bills.</field>
<fieldname="note">Some sections of employees mat get allowance for purchase of office dress/uniform.
In such case, the component would become non-taxable.</field>
<fieldeval="0.0"name="amount_fix"/>
<fieldname="sequence"eval="35"/>
<fieldname="note">Some sections of employees mat get allowance for purchase of office dress/uniform.In such case, the component would become non-taxable.</field>
<fieldname="note">In some of the cases, companies may provide a component for telephone bills.Employees may provide actual phone usage bills to reimburse this component and make it non-taxable.
<fieldname="note">In case company provides component for this and employee use self owned car for official and personal purposes, Rs 1800 per month would be non-taxable on showing bills for fuel or can maintenance. This amount would be Rs 2400 in case car is more capacity than 1600cc.</field>
<fieldname="note">If stocks/equity mutual funds are sold before one year, 15% tax would be payable on such gains. STT should have been on transaction.</field>
<fieldname="note">If stocks/equity mutual funds are kept for more than a year before sale,it would be long term gains and such gains would be fully exempt from income tax. Securities transaction tax (STT) must have been paid on transactions for availing this exemption.</field>
<fieldname="note">Professional tax for company should be paid on or before 30th sept,The amount is Rs.2000 per year.There is no payment form to be filled.</field>
<fieldname="note">As per income tax rules, all payment which are taxable in nature should be done after deduction of taxes at the source itself. Hence employer compute income tax on salary payment and deduct it every month. This TDS is based on employee’s saving/investment declaration at the start of year. If investments for tax saving is not done, large amount may be deducted in last few months.</field>
<fieldname="note">VPF is a safe option wherein you can contribute more than the PF ceiling of 12% that has been mandated by the government.This additional amount enjoys all the benefits of PF except that the employer is not liable to contribute any extra amount apart from 12%.An added advantage is that the interest rate is equal to the interest rate of PF and he withdrawal is tax free. Please note that the maximum contribution towards VPF is 100% of your Basic.The highest rate of interest (close to 9%) makes it a very attractive saving scheme. Because of these advantages many employees chose not to close their PF account even after getting employment else where other than India.Employees also get a major tax break on their entire contribution to the fund up to a ceiling of Rs. 70,000/-</field>
<fieldname="note">The LWF is applicable to all the members of the organisation except the Management staff (Staffs having authority to sign on the cheque/official documents on behalf of the organisation). for e.x. Employee Contribution is Rs. 3.00 and Employer contribution Rs. 6.00 Total Rs 9.00 and deposited to the LWF office.It is half yearly contribution (June and December).</field>
<fieldname="note">Both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month.</field>
<fieldname="note">Any amount contributed by your employer to your NPS account is treated as part of your salary and is included in your income but you can claim deduction under Section 80C for this too.thus, effectively making it exempt from tax within the limit of 10% of your basic salary. This is very useful and tax efficient for you particularly if you fall in the maximum tax.</field>
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Mustufa Rangwala (OpenERP)
