Parag Ashar’s Post

10 LPA In-Hand Salary Breakup Including Income Tax Calculation – Maximize Your Take-Home Pay! 💼💰 If you're earning a 10 LPA (₹10 Lakhs Per Annum) package, knowing how your salary is split and taxed can help you maximize your take-home pay. Here's a breakdown of what you can expect: Salary Components: Basic Salary: Around 40%-50% of CTC, so approx. ₹4-5 lakhs annually. HRA (House Rent Allowance): Roughly 40%-50% of basic if you’re renting a house. Special Allowances: Balance CTC after allowances. PF (Provident Fund): Around 12% of Basic (Employer Contribution). Income Tax Calculation: Based on the Old vs New Tax Regime, your tax liability will vary. Using a reliable tool like the HR Calcy Tax Calculator, you can easily compare both regimes and choose the one that reduces your tax outgo. For a 10 LPA salary, expect deductions like: Standard Deduction: ₹50,000 Section 80C, 80D deductions if applicable Final tax payable depends on the regime you choose. Maximize your take-home by optimizing deductions and choosing the right tax regime! 🚀💡 Explore HR Calcy's tools to break down your salary and tax efficiently! ✨ https://lnkd.in/gvEVB7zK #IncomeTax #SalaryBreakup #TaxPlanning #TakeHomePay #10LPA #FinancialPlanning #HRCalcy #TaxCalculator #MaximizeEarnings

📣 Tax efficient salary from April 2024 to March 2025 📣 As a director taking a low salary and dividends what salary should you take to optimise your tax position? Our advice hasn't changed since last year FYI so our clients will remain on the same salary this year! (The following assumes the only income is salary and dividends) Option 1- Pay no national insurance Monthly salary £758.33 Annual salary £9,100 Why choose this option? ✅Qualify for state pension ✅Corp tax reduction for salary taken ✅No monthly payments due to HMRC Option 2- Optimise personal allowance and tax position Monthly salary £1,047.50 Annual salary £12,570 Why choose this option? ✅This is THE most tax efficient option (as the corp tax saving outweighs the company company national insurance payable) ✅Corp tax reduction for salary taken ✅Qualify for state pension ❌The company WILL have some tax to pay so you need to make sure you review the payroll information and make the HMRC payments when due If you are great with your admin or you have employees and are making frequent payments to HMRC the second option is the best! #Tax #Salary #TheyAskYouAnswer

📣 Tax efficient salary from April 2024 to March 2025 📣 As a director taking a low salary and dividends what salary should you take to optimise your tax position? Our advice hasn't changed since last year FYI so our clients will remain on the same salary this year! (The following assumes the only income is salary and dividends) Option 1- Pay no national insurance Monthly salary £758.33 Annual salary £9,100 Why choose this option? ✅Qualify for state pension ✅Corp tax reduction for salary taken ✅No monthly payments due to HMRC Option 2- Optimise personal allowance and tax position Monthly salary £1,047.50 Annual salary £12,570 Why choose this option? ✅This is THE most tax efficient option (as the corp tax saving outweighs the company company national insurance payable) ✅Corp tax reduction for salary taken ✅Qualify for state pension ❌The company WILL have some tax to pay so you need to make sure you review the payroll information and make the HMRC payments when due If you are great with your admin or you have employees and are making frequent payments to HMRC the second option is the best! #Tax #Salary #TeamGravitate #GravitateAccounting

𝗧𝗮𝘅 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗳𝗼𝗿 𝗦𝗮𝗹𝗮𝗿𝘆 𝗘𝗮𝗿𝗻𝗲𝗿𝘀 --(𝗣𝘁 𝟭) My fellow salary earners, last week was a beautiful one for us and we all know why. By now, i suppose most of us Christians have paid our tithes and by the 10th of this month, our employers ought to have remitted our PAYE too, to balance the equation. But then, one of the major complaints we often make is that our taxes are high, compared to the salary we are still managing. How can we pay so much taxes when we barely enjoy services from the government? Sometimes, clients come to us, telling us their employees are complaining that their PAYE is high and they seek advice on how to reduce this PAYE. To advise on tax planning, we have to first examine the root cause of the ‘problem’. As a salary earner, you are interested in tax planning because you perceive your PAYE to be high and considering the economy, your net pay is not enough. You probably might not be interested if the government was mandating your employer to deduct so little from you. 𝗦𝗼, 𝘄𝗵𝘆 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀 𝗵𝗶𝗴𝗵? A high PAYE could be due to any of the following reasons: 🔺 Your gross salary is increasing, thereby putting you in a higher tax bracket: It is called PAYE - ‘pay as you earn’ for a reason. Progressive taxation - as a senior man or senior woman, the higher you earn, the higher your PAYE. 🔺 You received additional bonuses, allowances, gratuity, global income or other forms of taxable income 🔺 You do not have personal tax reliefs that can be applied on your gross salary 🔺 Your employer did not provide any form of tax relief, deductions and exemptions on your gross salary. 🔺 Tax credits phase out - If tax credits phase out as income increases, it can lead to a higher effective tax rate. 🔺 Tax policy changes: Changes in tax laws or regulations can increase tax liability. 🔺 Etc ....................... In my subsequent posts, we would be looking at tax reliefs, exemptions and allowable deductions available to salary earners. 𝑸𝒖𝒊𝒄𝒌 𝒐𝒏𝒆: 𝑨𝒓𝒆 𝒚𝒐𝒖 𝒔𝒂𝒕𝒊𝒔𝒇𝒊𝒆𝒅 𝒘𝒊𝒕𝒉 𝒕𝒉𝒆 𝒂𝒎𝒐𝒖𝒏𝒕 𝒐𝒇 𝑷𝑨𝒀𝑬 𝒅𝒆𝒅𝒖𝒄𝒕𝒆𝒅 𝒇𝒓𝒐𝒎 𝒚𝒐𝒖𝒓 𝒎𝒐𝒏𝒕𝒉𝒍𝒚 𝒔𝒂𝒍𝒂𝒓𝒚? 📍 Feel free to like, repost and share your opinion in the comment section.

No one banks heavily on pre-election, conditional promises, hence few if any surprised by status quo on the payroll tax...see story below for The Winnipeg Chamber of Commerce thoughts and more. #taxation #economy #manitoba #business https://lnkd.in/eMW9ZtFf

With the release of our latest salary guide for Tax, it’s always interesting to reflect on how the market played out last year now that month one is done and dusted for 2024.    As we cover in our insights, last year’s market brought with it a healthy dose of realism after what was the blue sky market of the previous 2 years. Interest rates rose, employment rates fell and the degree of political and economic uncertainty eroded the already fragile confidence to really hamstring market movement around M&A. Always a difficult month to predict due to other priorities on the corporate agenda, but this January brought with it an increase in appetite for hiring when we compare against the end of last year, whether that be replacement and/or additional headcount. This said, it would be naïve to get carried away and project everything is looking up as we look forward. Yes, things have stabilised (for now) and there’s reportedly over $2.5 trillion in “dry powder” that’s been raised globally across the buy-side world which will need to be put to work, but with 64 countries going to the polls in 2024 and the fact we continue to be working our way through the “great correction” when it comes to our working patterns in the post-pandemic world, a lot can still happen!   Despite the slow-down we saw in the market, you will note from our guide that salary increases continued to outpace inflation across the tax world last year both in-house and the firms. As early signs suggest the demand for talent in tax is likely to remain relatively high this year, so too can we expect it to remain competitive from an attraction and retention point of view, putting further pressure not only on compensation but also flexible working arrangements. More insights on the tax market can be found in our 2024 Tax Salary Guide: https://lnkd.in/eqPChgTQ   For a more detailed discussion around the market please do not hesitate to contact myself or one of the team:   Tasha D. - Interim Holly Hatton - Financial Services Oliver Baggs - Commerce & Industry Thomas Fisher - Indirect Tax Joshua Wells Wells - Practice

Four measures at Autumn Budget 2024 impede company profitability. By our calculations, four Autumn Budget announcements will inhibit the profitability of the companies that are the UK’s source of growth. Those four profit-inhibiting Autumn Budget announcements are: 1. Increasing the National Living Wage by 6.7% to £12.21 an hour. 2. Increasing the rate of Employer NICs to 15% from 13.8%, with effect from April 6th 2025. 3. Decreasing the secondary threshold, above which Employer NIC is payable, from £9,100 to £5,000, with effect from April 6th 2025. 4. Increasing the rate of CGT payable via Business Asset Disposal Relief from 10% to 14% from April 6th 2025 and to 18% from April 6th 2026. (N.B. The government has also increased the lower rate of CGT from 10% to 18% and the higher rate from 20% to 24%, with immediate effect). But I can help here with two legally compliant and proven solutions. Particularly for points 2 and 3 above. Solution 1 - Does your company have an annual wage bill exceeding £200k? - How would you like to reduce the Employers NI payment by 50%? - Not a tax avoidance scheme. HMRC receives all taxes owed via PAYE. Solution 2 - Does your company have an annual wage bill exceeding £3 million? - How would you like to significantly increase your staff retention. - Also receive a very healthy monthly commission? - FCA regulated. Get in touch today and I can arrange for more details to be shared, plus setup the solution presentations, by the solution providers.

Happy New Year , Hope you had a nice Christmas🎅 . Some Changes to be aware of affecting Individuals & Businesses in 2025 : Income Tax: Standard Rate Band: The threshold for the 20% income tax rate increased by €2,000, allowing a single individual to earn up to €44,000 before the higher 40% rate applies. Tax Credits: The Personal Tax Credit, Employee Tax Credit, and Earned Income Tax Credit each rose by €125, bringing them to €2,000. Universal Social Charge (USC): Rate Reduction: The 4% USC rate decreased to 3%. Band Adjustment: The 2% USC band's upper limit increased to €27,382, aligning with the national minimum wage rise to €13.50 per hour. Small Benefit Exemption: From January 1, 2025, employees can receive up to five non-cash benefits annually, tax-free, with the total exemption limit rising from €1,000 to €1,500. Rent Tax Credit: The Rent Tax Credit increased to a maximum of €1,000 per individual and €2,000 per jointly assessed couple, applicable retrospectively for 2024 and available for 2025. Minimum Wage: The national minimum wage increased by 80 cents to €13.50 per hour from January 1, 2025. Barry-John Ryan BCL., MA., QFA., Grad.Dip.Fin.Plan. CFP®, SIA , Barry-John Ryan BCL., MA., QFA., Grad.Dip.Fin.Plan. CFP®, SIA

Do you know the difference between wages and distributions ❓❓ 🔹 Wages 1. Definition: Regular payments (hourly wages, salaries) for work or services by employees. 2. Taxation: Subject to payroll taxes (income, Social Security, Medicare). 3. Frequency: Paid regularly (weekly, bi-weekly, monthly). 4. Employment Relationship: Paid to employees working under the company's control. 5. Reporting: Reported on Form W-2 for tax purposes. 🔹 Distributions 1. Definition: Payments to owners/shareholders from business profits (dividends, partnership distributions). 2. Taxation: Taxed based on business structure, often not subject to payroll taxes. 3. Frequency: Made at irregular intervals, based on profitability. 4. Ownership Relationship: Paid to owners or shareholders, reflecting their investment. 5. Reporting: Reported on forms like 1099-DIV, Schedule K-1, or Form 1120. . . . Wages are regular employee compensation subject to payroll taxes, while distributions are returns on ownership stakes with different tax treatments. If you’re a business owner and you’re looking for some tax assistance, schedule a meeting with us! We would be happy to help keep you on track. 📧 info@cavincpa.com #finacialfreedom #businessowner #taxassistance #taxtips #cpa #taxexpert #stlouis #stl #financialindependence #owningabusiness #businessowner

Monitor Your Taxes When a company offers you a starting salary, calculate whether that salary after taxes meets your financial needs and savings goals. Many online calculators help you see your after-tax salary, such as PaycheckCity.com, and chart your gross pay (total earnings) and net pay (earnings after taxes and other deductions or take-home pay). In 2023, an annual salary of $35,000 in New York netted $28,461 after federal and state taxes, or about $2,372 per month. In the U.S., low-income earners are taxed at a lower rate than higher-income earners—the higher your salary, the higher the tax rate. A salary increase from $35,000 to $41,000 a year looks like an extra $6,000 per year or $500 per month, but the tax rate will be higher, so it will only give you $4,463, or $372 per month.