Salary FAQs

A)

Variable pay component is increasingly becoming an integral part of employees’ salary. It is related to the performance of the employee. It is also good on the part of the employer as he has to give the variable pay only when the employee meets the set benchmarks or targets. On the other hand employees work hard to earn the extra money. So it is a win-win situation for employee as well as employer. Variable pay is easy to apply where the measurables are clear like in sales and marketing where performance based incentives are common.

A)

CCA stands for City Compensatory Allowance; this component in salary helps you to bear the additional burden of high living cost in cities. It is a fixed allowance and is not calculated as a percentage of the basic salary. CCA is taxable.

A)

For calculating the HRA component of the salary for tax purposes 4 points have to be factored in

i)Basic salary

ii) HRA received

iii) rent paid

iv) staying in metro(50%) or non-metro(40%)

Example: Anjali’s basic salary is 30,000 and she pays a rent of 15,000 while working in a metro city. Her HRA is 20,000

HRA = 20000

50%(coz she stays in a metro) of basic salary=15,000

Rent paid-10% of basic salary (3,000)=12,000

Value of actual HRA= 20000-12000=8000

Hence her taxable HRA would be 8000.

A)

All salaried employees receive their monthly due after tax deducted by the employer, i.e Tax Deducted at Source (TDS). It is the responsibility of the employer to have the tax amount deducted on behalf of the employee and to submit it to the government. The employees get a Form 16 which is detailed note of an individual’s salary and accordingly the tax deducted monthly. However Form 16 is not required if TDS is not deducted from salary. An alternate to this is Form 16A which is issued by banks to pension holder.

     This Form 16/16A is required for filling tax returns and it also stands as a proof for income in case of applying for loans etc.

A)

Salary due to an employee in previous years which has not been taxed constitutes ‘arrears’. This is taxable in the year of payment of arrears. However Section 89 under Chapter VIII of the Income-tax Act (the Act), which relates to "Rebates and Relief"  brings benefit to all taxpayers who get salary in advance or in arrears irrespective of being a government employee or private sector employee.

The calculation goes like - A the amount of tax applicable to the total income, including, the arrears in the year of receipt.

 B the amount of tax by adding arrears to the total income of the years to which they relate.

A-B is the amount of deduction allowed.

A)

Internship forms an important part of the 5 years MBBS programme in India. It is during this phase that medical students get the exposure to practice their acquired knowledge of medicine under the supervision of senior practitioners. Most of the reputed government and private hospitals pay stipend during internship. The amount varies from 10k to 20k per month.

A)

All employees who are engaged in service are entitled to certain no. of paid leaves during the year which is termed as earned leave. In instances where an individual does not avail the leave, he/she is entitled to either carry forward the leaves or have it encashed; this amount is termed as leave salary. This amount is taxable in some cases while in some it is exempted.

Government Employee- In case the leave encashment is at the time of leaving the job or retirement, the entire leave salary is exempted from tax under section 10A(10AA)(i).

Non-Government Employee- For those who come under this category, the leave salary at the time of leaving the job or retirement is fully or partially exempted from tax. Conditions being: Cash equivalent of the leave salary in respect of the period of earned leave to the credit of employee at the time of retirement/ superannuation/resignation cannot exceed -

1. 30 days for every year of actual service or
2. 10 months of average salary(basic salary +dearness allowance) or
3. Rs. 3 lakh

..Whichever is less.

However leave salary for both government and non-government employees is taxable if encashed while continuing with the service. Exemption in this case can be taken under section 89 of the Indian Income Tax act.

A)

Though it is not mandatory but you should file ITR even if your income is not taxable. There are number of advantages of filing an Income Tax Return.

By filing the ITR every year you create your financial records with the tax department. This is taken up positively by most of the financing and loan companies. So by filing ITR regularly, availing any kind of loan becomes quiet easy.

Also while making any kind of investment, ITR helps you, as it is valid proof of your income.

A)

One of the professionals who are always in demand is the agricultural and food scientist, who ensures the food safety and agricultural productivity. The burden of maintaining the Nation’s food supply is on them. Majorly agricultural and food scientists study farm crops and animals and look out for the ways to improve their quantity and quality. For this most of them work in the research institutes related to agriculture, as food scientist in research universities, or in the private research institutes. They work in laboratories, offices and even in the fields.

Depending upon their area of specialization agricultural and food scientist can be:

• Food scientist

• Plant scientist

• Soil scientist

• Animal scientist

To become agricultural and food scientist one needs minimum of bachelor’s degree. Also degree in biology, physics and chemistry or related engineering may help you to be in this profession.

Students who want to become soil and plant scientists take the courses that include biology, botany, chemistry and plant conservation. To become food scientist one has to take the courses such as food engineering, food chemistry, food microbiology, and food processing operations. Students who want to become soil and plant scientist take the courses of soil chemistry, entomology, plant physiology, pathology and biochemistry. Some of the students go for the masters and Phd in the same field that gives extra emphasis on research and lab work.

Most of the people after completing the bachelor’s degree also opt the managerial jobs related to farming, agricultural inspections, ranching and even work with the companies that make or deal in fertilizers, farm equipment or seeds.

To become a successful agricultural and food scientist, one should have great communication skills, critical and analytical thinking, data analysis ability, ability to analyze data, decision making and observation skills.

Median annual wage of agricultural and food scientist in May 2010 was $58,450. Top ten percent had also earned more than $105,040 whereas te lowest 10 percent earned less than $34,320.

A)

Dancing is an art form that with time has taken the shape of a career. Thanks to the popularity given to it by Dance programs on TV channels otherwise it was considered to be a profession without respect with few exceptions. Dancers earlier used to entertain at public gathering. But with time, traditional dancers performing folk dance, are much respected like any other profession in the society.

To become a professional dancer you have to learn all most all types of dance forms such as Bharat natyam, Kuchupudi, Odissi, Kathak, Kathakali and so on. All the dance forms in India are very devotional and directly connect you with God. Bharat Natyam is the purest and oldest classical dance form.

If you know that your kid is interested in dance and can perform well then start the informal training as early as you can. Once the basic education at 10+2 level has been completed, enroll him or her in the degree pertaining to dance. You can go for B.A. in Bharathnatyam, Dance, Dance Hons, Kathak etc. Even Diploma in dance can be done.

After completing the course one can join professional dancers and their troops, TV channels as dance performers or one can start his or her own troop or can open a dancing school.

Starting salary of professional dancer is Rs 10,000 to 15,000 per month. With experience and popularity one can earn more than 1 Lakh as well.