Next, the income tax that must be paid for the financial year must be calculated.
#Original salary slip professional#
The taxable income can be generated by subtracting Tax Saving Instruments, Medical Insurance, Professional Tax, Leave Travel Allowance (LTA), House Rent Allowance (HRA), and Tax-Free Allowance from the Gross Salary. Next, you must calculate the taxable income. The Gratuity that is subtracted on a yearly basis = 15/26 x Basic Salary (per month) Gratuity = (Basic salary x Dearness Allowance) x 15/26 x Number of years of service The formula for the calculation of Gratuity is mentioned below: Gross salary can be obtained by subtracting the Gratuity and the Employees’ Provident Fund (EPF) from the CTC. Gross salary is neither your Cost to Company (CTC) or basic salary.