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प्रश्न
Premier Furniture Ltd. runs a furniture store in city C. The store has three Sales Executives, SE1, SE2 and SE3.
The company has a policy of awarding incentives. SE2 was awarded an incentive as from 1st April 2023, equal to 10% of his monthly Basic Pay. The incentive was combined with Other Allowances.
Another policy of Premier Furniture Ltd. is that an employee can increase his portion of PF contribution from 10% to 15% of the Basic Pay. The contribution of the employer remains the same at 10% of the Basic Pay.
SE1 accordingly increased his PF contribution from 1st April 2023, itself, to 15%.
The payroll summary representing the cumulative position of the three executives at the end of the year 2023-24 is as follows:
| A | B | C | D | E | F | G | H | I | J | K | |
| 1 | Employee | Basic Pay | HRA | Conveyance | Other Allowances | PF Employer Contribution | PF Employee Contribution | Misc. Deductions from Salary | Income Tax | Gross Salary | Net Salary |
| 2 | SE1 | 30,00,000 | 75,000 | 60,000 | 30,000 | 30,000 | ?? | 20,000 | 5,000 | ?? | |
| 3 | SE2 | 2,40,000 | 60,000 | 48,000 | ?? | 24,000 | 24,000 | 25,000 | 4,000 | 3,84,000 | ?? |
| 4 | SE3 | 2,00,000 | 50,000 | 40,000 | 30,000 | 20,000 | 20,000 | 15,000 | 3,000 | ?? |
Based on the above transactions and the information given in the spreadsheet, answer the following questions:
- PF contribution of SEI in Cell G2. [2]
- Net Salary of SEl in Cell K2. [2]
- Other Allowances (excluding the incentive) earned by SE2 in Cell E3. [2]
- Gross Salary of SE3 in Cell J4. [2]
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उत्तर
i. PF contribution of SE1 in Cell G2
Basic Pay of SE1 = ₹ 3,00,000
Employee PF contribution = 15% of Basic Pay
PF (Employee) = 15% × 3,00,000
= ₹ 45,000
PF contribution of SE1 (Cell G2) = ₹ 45,000
ii. Net Salary of SE1 in Cell K2
Calculate Gross Salary of SE1
| Particulars | Amount (₹) |
| Basic Pay | 3,00,000 |
| HRA | 75,000 |
| Conveyance | 60,000 |
| Other Allowances | 30,000 |
| Gross Salary (J2) | 4,65,000 |
Calculate Total Deductions
| Deductions | Amount (₹) |
| PF (Employee) | 45,000 |
| Misc. deductions | 20,000 |
| Income Tax | 5,000 |
| Total Deductions | 70,000 |
Net Salary
= 4,65,000 − 70,000
= ₹ 3,95,000
Net Salary of SE1 (Cell K2) = ₹ 3,95,000
iii. Other Allowances (excluding incentive) of SE2 in Cell E3
Basic Pay of SE2 = ₹ 2,40,000
Incentive
= 10% of Basic Pay
= 10% × 2,40,000
= ₹ 24,000
Total Other Allowances (given) = ₹ 48,000
Other Allowances (excluding incentive)
= 48,000 − 24,000
= ₹ 24,000
Other Allowances of SE2 (Cell E3) = ₹ 24,000
iv. Gross Salary of SE3 in Cell J4
| Particulars | Amount (₹) |
| Basic Pay | 2,00,000 |
| HRA | 50,000 |
| Conveyance | 40,000 |
| Other Allowances | 30,000 |
| Gross Salary | ₹ 3,20,000 |
Gross Salary of SE3 (Cell J4) = ₹ 3,20,000
| A | B | C | D | E | F | G | H | I | J | K | |
| 1 | Employee | Basic Pay | HRA | Conveyance | Other Allowances | PF Employer Contribution | PF Employee Contribution | Misc. Deductions from Salary | Income Tax | Gross Salary | Net Salary |
| 2 | SE1 | 30,00,000 | 75,000 | 60,000 | 30,000 | 30,000 | 45,000 | 20,000 | 5,000 | 3,95,000 | |
| 3 | SE2 | 2,40,000 | 60,000 | 48,000 | 24,000 | 24,000 | 24,000 | 25,000 | 4,000 | 3,84,000 | 3,31,000 |
| 4 | SE3 | 2,00,000 | 50,000 | 40,000 | 30,000 | 20,000 | 20,000 | 15,000 | 3,000 | 3,20,000 |
