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Salaries

Direct Taxation

The attached file , represents the taxation chapter salaries page no.4.114 of module 2 of Direct tax. My question is about how to calculate Basic pay using the sentence i.e. the scale of rs 20000-1000-30000 Please clarify this doubt.

Kumar G

CA Final

★ 12K+

20-Feb-21 19:50

655

Answers (4)

Best Answer

Appointed on 01.01.2020 Pay Scale 20k-1k-30k This means, he will get a basic salary of 20k w.e.f. 01.01.2020. He will get annual increment of 1k w.e.f. 01.01.2021 and onwards till his salary reaches 30k. Thereafter, no further increment till he is placed in other grade. Salary for FY 01.04.2020-31.03.2021 (AY 2021-22) 20k x 9 months (April 2020 to Dec 2020) = 180000 Now, from 01.01.2021 he will get increment of 1k So, for remaining 3 months of FY 20-21 21k x 3 months (Jan 2021 to Mar 2021) = 63000 Total basic salary for FY 20-21 = 180000+63000=243000

Deepak Gupta

CA Inter

★ 1K+

20-Feb-21 20:11

Thank you very much sir

Thread Starter

Kumar G

CA Final

★ 12K+

20-Feb-21 21:08

Deepak Gupta

Appointed on 01.01.2020 Pay Scale 20k-1k-30k This means, he will get a basic salary of 20k w.e.f. 01.01.2020. He will get annual increment of 1k w.e.f. 01.01.2021 and onwards till his salary reaches 30k. Thereafter, no further increment till he is placed in other grade. Salary for FY 01.04.2020-31.03.2021 (AY 2021-22) 20k x 9 months (April 2020 to Dec 2020) = 180000 Now, from 01.01.2021 he will get increment of 1k So, for remaining 3 months of FY 20-21 21k x 3 months (Jan 2021 to Mar 2021) = 63000 Total basic salary for FY 20-21 = 180000+63000=243000

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