Gross salary

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ramana

ramana (Querist)
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13 April 2015 HI, PROFESSIONALS

I HAVE TAKEN Rs 65000 NET SALARY

what will be gross salary

plz

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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13 April 2015 it depends on the break up of salary provided by your company

ramana

ramana (Querist)
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13 April 2015 how much amount deduct incometax in this net amount

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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13 April 2015 i dont think that they wil deduct any amount...

or give proper information regarding how months u joined

ramana

ramana (Querist)
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13 April 2015 HI, SIR

I HAVE RECEIVED Rs 3,50000 towards employee provident fund from state bank of india

is there any taxable income or not

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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26 July 2024 To determine your gross salary from your net salary and understand the tax implications of your provident fund (PF) withdrawal, you need to consider a few factors:

### 1. **Calculating Gross Salary from Net Salary**

**Gross Salary** includes your basic salary, allowances, and any other benefits before deductions like PF, income tax, and other contributions.

To calculate the gross salary based on a net salary of ₹65K, you need to account for the deductions made from the gross salary. Here's a general approach:

1. **Determine Deductions**:
- **Employee Provident Fund (EPF)**: Typically 12% of the basic salary.
- **Professional Tax (if applicable)**.
- **Income Tax**: Based on your total income and applicable tax slab.

2. **Estimate Gross Salary**:
- Start with the net salary and add back the typical deductions to estimate the gross salary.

Here is a simplified approach:

- **Net Salary**: ₹65K
- Assume typical deductions (EPF, Professional Tax, Income Tax) amount to around 20% (this is a rough estimate and may vary).

\[
\text{Gross Salary} = \frac{\text{Net Salary}}{1 - \text{Deductions Percentage}}
\]

\[
\text{Gross Salary} = \frac{65K}{1 - 0.20} = \frac{65K}{0.80} \approx 81,250
\]

This is a simplified estimate and may vary based on exact deduction percentages and other factors.

### 2. **Tax Implications of PF Withdrawal**

#### **Provident Fund (PF) Withdrawal**

**Taxability**:
- **Tax on PF Balance**: The taxability of PF balance depends on whether it was withdrawn before or after completion of 5 years of continuous service.

1. **PF Withdrawal Before 5 Years**:
- If the withdrawal is before 5 years of continuous service, the amount is taxable as per the individual’s tax slab. The amount received is added to the taxable income and taxed accordingly.

2. **PF Withdrawal After 5 Years**:
- If the withdrawal is after 5 years of continuous service, the amount is typically tax-free.

**In Your Case**:
- **Amount Received**: ₹3.50L

If you withdrew the PF balance before completing 5 years of continuous service, this amount would be taxable. The PF amount is added to your total income and taxed as per your applicable income tax slab.

- **Tax Calculation**:
- Add the PF amount to your annual income.
- Compute the total taxable income and apply the income tax rates based on your slab.

### **Example Calculation**:

Assume you withdrew ₹3.50L from PF and it is taxable (withdrawn before 5 years).

1. **Gross Income**:
- Annual Salary: ₹81,250 x 12 = ₹9.75L
- PF Amount: ₹3.50L

2. **Total Taxable Income**:
- ₹9.75L + ₹3.50L = ₹13.25L

3. **Income Tax Calculation**:
- Calculate tax based on the applicable tax slab for ₹13.25L

### **Summary**

- **Gross Salary Estimate**: Approx. ₹81,250 (based on net salary of ₹65K).
- **PF Withdrawal Taxability**: ₹3.50L is taxable if withdrawn before 5 years of continuous service.

For precise calculations and to ensure compliance with tax regulations, consulting a tax professional or financial advisor is recommended.