Take-home salary money awareness alert! Receiving a lesser amount in bank account? These may be the reasons

Every employee eagerly waits for his salary which is credited into his account at the end of the month. It often happens that as soon as your salary gets credited you come to know that what you have received is less than what was expected.

At the same time, you start looking for the areas or provisions under which your salary got deducted. There are many things about deduction in salary, which one should keep in mind.

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Tax expert CA Manish Gupta says that every employee should check his payslip carefully every month. It is important to check where the amount is being deducted and also if the only money which was decided to be deducted is being deducted or more.

Here is what CA Gupta has to say on where the deductions are done:-

Provident Fund (PF)

Provident Fund (PF) deduction is one of the most important deductions for employees. It is 8.33 percent of the basic salary. The employee should calculate his PF and see that the PF has been deducted as per rules and also check that the UAN number of your PF is correctly entered in the salary slip.

The employee should also find out whether his employer is registered under the PF Act or not. If the institution is not registered, then the deduction of PF is illegal and the benefit of deduction made from the salary of the employee will not be available to him.

If an employee has authorized to give any voluntary contribution or donation, then that money can also be deducted from the employee's salary. Its details must be given in the salary slip.

It has been seen many times that employees request their employer that their PF should be deducted more so that more money is deposited in their PF. If this is the case, then the employee's contribution will be deducted more.

ESI

It is the second major deduction in one's salary. Under this 1.75 percent of the total salary is deducted. The employee should also check the ESI number in his salary slip and confirm with his account number. The employee should also find out whether his employer is registered under the ESI Act or not.

TDS - Income Tax

If an employees salary exceeds the taxation limit of Income Tax Act, then the employer that is the company is required to deduct TDS from the salary of its employees under section 192 of the Income Tax Act.

Loan repayment installments and interest

If the employee has taken any kind of loan from his company for personal, education, marriage, car or house etc., then the monthly installment of that loan i.e. EMI and interest (if any) will be paid on the basis of his loan agreement and the amount can be deducted from the salary.

Salary advance

In case of sudden need of money, if an employee takes advance from his company, then at that time it is decided between the company and the employee that how and how much will be its deduction.

Leave or late arrival

Many times, if you do not reach at work on time or you take more leaves than the rule then the salary can be deducted for those number of days based on the HR policy of the company.

Penalty

If an employee has caused any loss and any penalty has been imposed on him or if any damage is to be recovered from him, then in this case deduction can be done from the salary as per the policy of the company.

Professional tax

In some states, it has been decided to deduct the professional tax of every employee who is eligible according to the law.

Contribution to any scheme of the company

If the employee has authorized the company to deduct a fixed amount on the basis of the contract of any scheme of the company, then this deduction can be done from your salary.