Our collection of resources based on what we have learned on the ground
Resources
Q&A
How long is the maternity period in India and what is the compensation on it?
- December 2013
- Free Access
The Maternity Benefit Act requires an employer to offer maximum of 12 weeks of average daily wages during maternity (including the day of her delivery and six weeks immediately following that day) as well as paid leave in certain other connected c...
Q&A
What does salary in India include?
- December 2013
- Free Access
Under Indian law, section 17 of the Income Tax Act defines salary to include: Wages Pensions or Annuities Gratuities Advance of Salary Any fee, commission, perquisites (the value of rent-free accommodation provided ...
Q&A
How wages are paid in India and how do they vary in India?
- December 2013
- Members Access
Wages vary considerably, depending on industry, company size and region. The national minimum wage of India is currently at INR115 (US$2.24) per day (effective from April 1, 2011); though this varies by state. Companies use both time and piece...
Q&A
What allowances are and what they include in India?
- December 2013
- Free Access
Allowances are categories of expenditures in India that are not taxable, provided they match certain specifications and do not exceed a certain amount. Allowances in India include those for: House Rent Transport Medical ...
Q&A
What is house rent allowance in India?
- December 2013
- Members Access
If a company chooses to provide House Rent Allowance (HRA) to its employees, the amount of this allowance exempt from tax is the lowest of three numbers: 50 percent of salary in metropolitan areas (40% percent non-metropolitan) Total...
Q&A
What is transport allowance in India?
- December 2013
- Free Access
Transport payments of up to INR800 (US$14.22) per month for an employee commuting between residence and place of work are exempt from tax. In the case of blind or orthopedically handicapped employees, INR1,600 (US$28.61) per month is exempt fr...
Q&A
What is medical allowance in India?
- December 2013
- Members Access
An exemption for medical expenses is allowed for: Reimbursement up to INR15,000 (US$266.66) for medical treatment of the employee and family members Reimbursement of expenses sustained by an employee and family members in approved ho...
Q&A
What is the allowance for medical treatment abroad in India?
- December 2013
- Free Access
For medical treatment abroad, the actual expenditure incurred includes the travel and stay abroad of the patient and one attendant (if permitted by relevant authority). The ceiling for the gross total income excluding the amount to be reimbursed i...
Q&A
How are allowances taxed in India?
- December 2013
- Members Access
Leave travel is remunerated for meeting travelling expenses incurred by an individual and family members (this includes only the spouse, two children and dependent parents, brothers and sisters) while on holiday in India. The amount excluded depen...
Q&A
What is gratuity and who is entitled to it in India?
- December 2013
- Free Access
Gratuity is a lump sum that a company pays when an employee leaves an organization; one of the many retirement benefits offered by a company to an employee. Basic requirements for gratuity are set out under the Payment of Gratuity Act 1971. The Paym...
Q&A
How is gratuity received under The Payment of Gratuity Act different from any ot...
- December 2013
- Members Access
Gratuity received under the Act is exempt from taxation to the extent that it does not exceed 15 days’salary for every completed year of service calculated on the last drawn salary subject to a maximum of INR350,000. Any other gratuity i...
Q&A
How is gratuity paid in India?
- December 2013
- Free Access
The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes billed to the person to whom the gratuity is allocated. If the amount of gratuity payable under the section is not paid by the employer within the perio...
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