07 July 2013
How should the ESI contribution of 1.75% be shown in Form 16? A friend gets Rs 10000 pm, his employer showed his salary as 10178 pm without mentioning anything about ESI contribution, is this correct? So the income under salaries will be 12 * 10000 OR 12 * 10178 ?
07 July 2013
You cannot show the ESI contribution in form 16. calculation you can show and deduction as well. Gross salary should be including ESI only
07 July 2013
This seems strange because this is not really an income and is not going in my bank account like salary...Although showing either ways doesn't make my friend taxable but still in my opinion either it should not be shown in Form 16 and if its shown then equivalent must be available as a deduction when declaring income
07 July 2013
ESI contribution by the employee is an expenses for his medical and benefit for him/her only,how ever in the act no where it is allowed as deduction.