HR & Payroll Calculators India

Yes, under the Payment of Bonus Act 1965, employers with 20 or more employees must pay a minimum bonus of 8.33% of basic salary (or ₹7,000, whichever is higher) to employees earning up to ₹21,000 per month. Maximum bonus can go up to 20%.

Leave encashment received during service is fully taxable. At retirement, government employees get full exemption. For private sector employees, the exemption is the least of: actual amount received, 10 months' average salary, leave encashment at the rate of 30 days per year of service, or ₹25 lakh (revised in 2023 Budget).

Form 16 is a TDS certificate issued by employers to employees. Part A shows TDS deducted and deposited with the government. Part B shows salary details, Chapter VI-A deductions, and final tax computation. It is mandatory for filing income tax returns when salary exceeds the basic exemption limit.

The employer issues Form 16. Part A is generated from TRACES (TDS Reconciliation Analysis and Correction Enabling System) and must be downloaded by the employer. Part B can be prepared by the employer and must be issued by June 15 each year for the previous financial year.