Mth302 assignment 1 fall 2020
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The basic salary of an employee is 20,000 find the following for this salary.
a) Calculate the allowances, if allowances are 50% of the basic salary. What is the taxable income of employee? Also find gross salary?
Answer:
1- Allowance:
50% of the basic salary
= Basic Salary x 50%
= 20,000 x 50 / 100
= 10, 00,000 /100
= 10,000
2- Taxable Income:
According to the taxation rules if allowances are 50% of basic salary, the amount is treated as tax free.
= 20,000
3- Gross Salary:
Basic Salary + Allowance
= Basic Salary + Allowance
= 20,000 + 10,000
= 30,000
b) What the cost of the business is on explanation of leaves (18.2%), group insurance/medical (5%) and additional social welfares (5.8%)?
Answer:
1- Cost of leaves:
18.2% of the gross salary
= Basic Salary x 18.2%
= 30,000 x 18.2 / 100
= 546,000 / 100
= 546,000 / 100
= 5,460
2- Group Insurance:
5% of the Gross Salary
= Basic Salary x 5%
= 30,000 x 5 / 100
= 150,000 / 100
= 1,500
Social Benefits:
5.8% of the Gross Salary
= Basic Salary x 5.8%
= 30,000 x 5.8 / 100
= 174,000 / 100
= 1,740
c) What is the total saving of the employees per month on account of provident trust fund
And gratuity?
Answer:
Provident Trust Fund
1/11 of the Basic Salary
= Basic Salary x 1/1
= 20,000 x 0.09
= 1,818
Gratuity
1/11 of the Basic Salary
= Basic Salary x 1/1
= 20,000 x 0.09
= 1,818
d) Define the gross remuneration and also find gross remuneration for the above salary package?
Answer:
Gross Salary = 20,000
Allowance = 10,000
Total Social Benefits = 725
Provident Trust Fund = 1818
Gratuity = 1818
Total = 34,361
Social Benefits
Cost of leaves + Group Insurance + Social Charges / 12
= 5,460 + 1,500 + 1,740 / 12
= 6,960 + 1,790 / 12
= 8.700 / 12
= 725
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