As per the Indian companies act as amended, I want to know that whether HRA should be shown separately in sub-schedule (included in salaries & wages head in P&L account) or it can be eliminated from sub-schedule and straightaway included in salaries and wages head only (not showing the breakup in subschedule seperately). Would be please clarify on this.
As per my best knowldge,
PL : As per factory Act
for worker - 1 PL / 20 days present for those who has completed 240 days during calander year, for new join employee average 20 days present must per month.
calculation is : Balance PL* (basic+DA)/(30/26 as per organisations rule) for monthly salary earner
Balance PL * Daily wages (Basic+Special Allow.)
CL : Casual leave is given to only staff and higher cadre
7 CL per annuam, which may be lapse after completion of calander year.
SL : SL is given to those, who are not covered under ESI,
7 SL per annuam, which may be carry forward max 45 leaves completion of calander year.
The maternity leave can never be encashed it can only be availed the Maximum period is 12weeks only, but in critcal circumstances it can be extends for 1 month more.
The earned leave is calculated on BASIC+DA and the month days will be taken as 26 only.
therefore the calculation will be as follows:
Total EL Balance*(BASIC+DA)/26.
You can avail the tax exemption on EL Balance but it is for 30days per year subject to maximum of Rs. 300000/-. only
I think preparation of EL account needs to be simplified a little bit. Work from Jan-Dec then get EL @ 1 day per every 20 days U have actually worked subject to minimum 240 days of actual work in a Calendar year. If you take into account the Holiday roaster of a Company & Weekly Offs then maximum working day would be something around 300. Divide it by 20 & U get 15 days maximum. Simple.
Then comes if & buts ie if somebody has taken leave for a prolonged period & his/her actual attendance at work place fells short of 240 days benchmark then take into account the authorised period of leave for reaching the 240 days milestone. But, leave will only be calculated on the days he/she has actually worked even if it may be less than 240 days for the year.
Suppose, somebody joins in between a Calender Year, then check whether his /her working attendance is 2/3rd the actual working attendance for the establishment, then you can calculate EL on the above procedure i.e. 1day for every 20 days.
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