Understand Pay Slip
Salary slip is a vital legal document. Of course, you may be working for a very small firm or
private employer. However, you can always request your employer for some form of a salary
slip.
Your salary slip is important for many reasons. Therefore, it is essential to obtain one every
month. Further, you also need to file your pay slips carefully for future reference.
- It will decide whether or not you will pay income and other taxes. Your salary slip will also help fix how much money you will pay as taxes every year. In addition, you will know how much income tax returns you can claim from the government.
- Further, bank credit, loans, housing mortgage and other borrowings you can avail is decided by the salary slip. Banks and lender institutions will definitely ask for copies of salary slip while applying for credit or loan. Pay slips help banks assess your credit worthiness and repayment capability.
- A pay slip plays role of a bargaining chip when negotiating salary with a new employer. Large companies ask for copies of the last salary slip as proof of your earnings. It helps them decide how much to pay you.
Income tax for FY 2019-20 is applicable to all residents whose annual income exceeds Rs.2.5 lakh p.a. The highest amount of tax an individual could pay is 30% of their income plus cess at 4% if their income is more than Rs.10 lakh p.a.
Here is all you need to know about how to file ITR online.
Before you file your taxes, you will need your Form 16, provided by your employer, and any proof of investment.