frequently asked questions (faqs) – (faqs) ?· (faqs) –(faqs) –––payroll, pf, gratuity &...

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  • FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS (FAQs) (FAQs) (FAQs) (FAQs) (FAQs) (FAQs) (FAQs) (FAQs) Payroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & SuperannuationPayroll, PF, Gratuity & Superannuation

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  • About the Hand BookAbout the Hand BookAbout the Hand BookAbout the Hand Book

    This handbook of FAQs is designed to capture common concern of employees related to Payroll, PF, Superannuation & Gratuity. It is

    intended to be used as a guide to resolve your queries on your own. It describes with examples for your better understanding. This

    book is written based on current rule and procedure. Employees will be notified of subsequent changes to the revised edition of

    handbook as they occur.

    No employee handbook can anticipate every circumstance or question. Even if we have tried our best to cover all great detail for more

    detailed questions, please do contact us.

    We have also developed a Web Call Center a web based system to capture grievances through structured manner. Please use the

    system to log a call for your grievances. We are regularly monitoring this to resolve all your queries.

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    First edition dated 31stMarch,2012 PayrollPayrollPayrollPayroll &&&& TrustTrustTrustTrust ManagementManagementManagementManagement TeamTeamTeamTeam

    Our team and their contacts

    Salary Components & Superannuation related query Mr. GOPAL MISHRA 022-67171673

    Full &Final Settlement related query Ms. P T TRIVEDI 022-67171674

    Income Tax related query Ms. U M RAJPUT 022-67171682

    Provident Fund Compliance & Accounting related query Ms. ROSHNI SIGANPORIA 022-67171679

    Provident Fund Loan, Transfer & Hard Furnishing

    related query

    Ms. SUDHA DHARMARAJ 022-67171677

    LTA, Phone, Medical, Car Fuel, Maintenance Driver

    Salary reimbursement & Pension related query

    Ms. FARIDA MISTRY 022-67171681

    Gratuity & Company Loans related query Mr. RAMCHANDRA KRISHNA NARKAR 022-67171683

    To escalate any mater please feel free to contact Mr. DEB NARAYAN SARKHEL 022-67171678

  • Table of ContentsTable of ContentsTable of ContentsTable of ContentsQuestion NoQuestion NoQuestion NoQuestion No DescriptionDescriptionDescriptionDescription PagePagePagePage

    Section Section Section Section ---- I ( Payroll)I ( Payroll)I ( Payroll)I ( Payroll)Q1. What is the primary structure of our monthly salary? 1

    Q2. What is flexi allowance? 1

    Q3. Why is this called Flexible? 1

    Q4. What is difference of CTC and monthly payroll components? 1

    Q5. Is allocation Flexi Allowance compulsory if so why? 1

    Q6. What is Cash Allowance? 2

    Q7. Is cash allowance fixed component? 2

    Table I (Below Senior Manager Grade) Fixed amount allocated in flexi 3

    Table II Variable amount like Medical, Phone, LTA, Self education reimbursement allocated in Flexi 4

    Table III (Senior Manager & Chief Manager)

    Senior Manager & Chief Manager can also allocate the car related expenses . Such allocation is shown in this table.5

    Q8. What is flexi rent? Table IV How the flexi rents adjust is being shown in this table. This is a case of Flexi Rent recovered @ 15% of Basic

    Salary. If the employee is staying in a bachelor accommodation then the recovery will 7.5% of Basic.

    6

    Table V One more example partly HRA and partly Company Leased Accommodation (Flexi as per old grade based as well as current %

    based).7

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    based).7

    Q9. Why there is all time arrear adjustment either negative or positive in Cash Allowance? 7

    Q10. What is O& M Allowance? 8

    Q11. When Additional HRA is applicable? 8

    Q12. What is Compensatory Allowance? 8

    Q13. What is Medical Fund? 8

    Q14. What is Mutual Benefit Fund (MBF)? 8

    Q15. What is Self Education payment? 8

    Q16. What is Accommodation Perquisites? 8

    Q17. What is Electricity Perquisites? 8

    Q18. What are Electricity/ Other Perquisites? 8

    Q19. What happens when an employee does not claim any amount allocated towards Phone, Medical etc? 8

    Q20. Why sometimes there is no salary? 9

    Q21. Why sometimes Phone payment voucher cannot be created? 9

    Q22. How much HRA can be allocated in Flexi? 9

    Q23. What is CAR_EMI payment? 9

    Q24. Can anybody claim Income Tax exemption on declaration basis? 9

    Q25. Is conveyance exemption applicable if Car Facility is availed? 9

    Q26. When House Rent Allowance is payable? 9

    Q27. When telephone bill is reimbursable? 9

    Q28. Is salary banking mandatory ?Is part banking facility available? 9

    Q29. What are Income tax benefits of taking and repaying a housing loan under EMI Plan? 10

  • Q30. If I buy a house jointly with my wife and take a joint home loan, can we both claim income tax deduction? 10

    Q31. My husband and I have jointly taken a home loan. He pays 75 percent of the EMI. What will be our individual tax benefits? 10

    Q32. What is Employer Tax and Tax Reimbursed shown in Pay Slip ? 10

    Q33. What are the tax benefits that I can avail of for repaying a home loan ? 10

    Q34. Can I take advantage of tax benefits from a home loan as well as claim House Rent Allowance (HRA) ? 11

    Q35.I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me. What is the total income tax exemption that I

    can avail of ?11

    Q36. I have two housing loans on two different properties. Can I get tax rebate under sec 80 C for both the loans? 11

    Q37. How to Calculate the Income Tax Exemption on House Rent Allowance (HRA) ? 11

    Q38. How perquisite in respect of accommodation is calculated ? 12

    Q39. How perquisite in respect of Holiday Home calculated ? 12

    Q40. What is current Tax Rate ? 12

    Section Section Section Section ---- II ( Provident Fund)II ( Provident Fund)II ( Provident Fund)II ( Provident Fund)Q1. What is Provident Fund and who can become members of The Tata Power Consolidated Provident Fund? 14

    Q2. From which date is the membership of employees effective? 14

    Q3. Who manages/controls The Tata Power Consolidated Provident Fund? 14

    Q4. What does the Provident Fund comprise of? 14

    Q5. What is Voluntary Contribution? 14

    Q6. How does the fund grow? 14

    Q7. Is employee the only beneficiary of the fund? 14

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    Q7. Is employee the only beneficiary of the fund? 14

    Q8. What is nomination? 15

    Q9. How long is the money retained in the fund? 15

    Q10. What does Family mean? 15

    Q11. What is Board of Trustees (BOT) ? 15

    Q12. Is it possible to draw money from Provident Fund while in service? 15

    Q13. What are the specific purposes for which loans from the fund are possible? 15

    Q14. What are the maximum limits up to which the refundable advances/loan are permissible? 16

    Q15. What are the conditions for grant of refundable advances? 16

    Q16. What are the specific purposes for which Non-Refundable loan/withdrawals from the fund is possible? 16

    Q17. What are the conditions to be fulfilled for the various purposes for which non-Refundable loans are granted? 17

    Q18. What are the maximum limits up to which the non-refundable advances/loans are permissible ? 18

    Q19. When can the final withdrawal be made? 19

    Q20. Is the final withdrawal free of Income Tax? 20

    Q21. Is the Provident Fund Accumulation Tax free if an employee retires/resigns from the organization after serving 4 years 6 months? 20

    Q22. What special provisions are applicable for members resigning from the company? 20

    Q23. Can the Provident Fund of a member from his ex-employer be transferred? 20

    Q24. What is the rate of interest given to members? 20

    Q25. What will happen when there is no claim of final withdrawal from Provident fund or no application received for transfer ? 20

    Section III (Gratuity FAQs)Section III (Gratuity FAQs)Section III (Gratuity FAQs)Section III (Gratuity FAQs)Q1. If gratuity is received from different employers in the same year, what will be the ceiling of exemption ? 23

  • Q2. Why is Gratuity paid ? 23

    Q3. What is the eligibility for receiving Gratuity ? 23

    Q4. What is Continuous Service? 23

    Q5. If an Individual receives Retirement Gratuity from more than one employer, are both the amounts exempt from tax? 23

    Q6. If gratuity is received from different employers in the same year, what will be the ceiling of exemption ? 23

    Q7. What is Eligibility for receiving Gratuity 23

    Q8. How is Gratuity calculated as per Gratuity Act 23

    Q9. How to determine years of service? 24

    Q10. What is the maximum amount of gratuity payable ? 24

    Q11. What is the Tax treatment of Gratuity ? 24

    Q12. Is our gratuity payment covered by Gratuity Act ? 24

    Q13. What is the basis of last salary for calculation of our gratuity payment. ? 24

    Q14. What is the company rule for Gratuity Payment? 24

    Q15. Is Gratuity a mandatory benefit? 25

    Q16. Who can be the nominees? 25

    Q17. How does one make a Nomination? 25

    Q18. Whether employee can change nominees? 25

    Q19. Is there