Taxability: This allowance is exempted up to a certain limit from income tax. For employees in a metro city, it is 50% of the basic pay whereas employees of a non-metro city it is 40% of the basic pay. It is decided based on different criteria like the city of residence and salary grade. House Rent Allowance (HRA)ĭescription: House Rent Allowance is the amount allocated by an employer to the employee as a portion of their CTC salaries. Taxability: Dearness Allowance is fully taxable for individuals who are salaried employees. DA (Dearness Allowance) is 4% to 10% of basic pay depending on the contract. Government employees, public sector employees, and pensioners get to DA. Dearness Allowanceĭescription: In India, Pakistan, and Bangladesh, employers provide Dearness Allowance A as the cost of living adjustment allowance. In addition to the basic salary, Allowances are extra financial benefits that employers provide to their employees. Taxability: Basic salary is 100% taxable if it crosses the Income Tax Slabs. Usually, the basic salary is 40-50% of CTC.

Basic Salaryĭescription: Basic salary is the fixed amount to be paid to an employee addition of any allowances or subtraction any deductions. There are three major components of the Salary: Basic Pay, Allowances, and Deductions. You just need to enter the payroll data of your employees and print the salary slip. We have created the 9 ready-to-use Salary Slip Templates with predefined formulas. Salary Slip is a payroll document that contains details of salary paid to any employee which include basic salary, allowances, deductions, attendance, leave record, etc.

Does higher basic pay increase your tax liability?.

Download Salary Slip Template with Leave Record.

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Format for drivers salary slip sample