What does SALARY Mean?

Regular wages received by an employee from an employer on a weekly, biweekly, or monthly basis is called as salary. Many salaries also include such employee benefits as health and life insurance, savings plans, and Social Security. Salary income is taxable by the federal, state, and local government, where applicable, through payroll withholding.

What do allowance means?

Allowances are fixed sums of money paid regularly in addition to salary. An amount that is allowed or granted is called as Allowance. There are three types of allowance.

• Taxable allowance, partially
• Exempted allowance
• Fully – exempted allowance

Fully exempted allowances: Dearness allowance, Medical allowance, Servant allowance Hill allowance, Deputation allowance, Over-time allowance, other allowance.

Partially exempted allowances: Entertainment allowance, House rent allowance, Education allowance, Children hostel allowance, Transport Allowance.

What is permanent account Number (PAN)?

Permanent account number is a unique identification number by which the Income Tax Department identifies any assesses. PAN consist of ten alpha numeric characters, and has to be taken by every individual who is employed. This is a mandatory requirement before submitting the annual income statement to the Income Tax Department

What is form 16?

Form 16 is a certificate issued by the employer to their employees under section 203 of Income Tax Act for Tax deducted at Source (TDS) from the income chargeable under the head “Salaries”. This is issued yearly and original form 16 is required to file individual Tax Returns

What is Pay slip?

A slip of paper included with you pay which records the employee’s earnings, deductions, tax etc. Or in simpler words, it is a basic reference document for information and transparency on the monthly financials between employee and employer.