Asst. Manager Finance & Admin
Sap Hr Functional Consultant
i have vague understanding on income tax especially on HRA,COA,CLA.
please correct me if i am wrong
1.HRA is tax free pay component.
2.CLA --- no idea
3.COA ----no idea
4.if the employee produces receipt of HRA THAT IS TAX FREE
5.other wise it is taxable
6.if the emp has housing loas up to 1,50,000 is tax exempted on condition ;the employee should occupy his own house
7. otherwise taxable
8.if the employee has no hra allowence still pays rent then 25% of sal is exempted under hra.
i will appreciate if anybody clarifies the entire picture.
30th November 2006 From India, Mumbai
Pls find the attachment.
This attachment will help you all on the salary calculation for tax purpose.
any one want more than this you have to contact a good salary consultant or your auditor.
4th December 2006 From India
Thank for your contribution. The file attached have lots of information on the subject.
I invite specific question and special conditions to discuss and find the best answer on taxation of salary.
Dear Group Members,
This is surprising that the attachment by Kugan has been downloaded by 46 times and no further comment has been added to the thread. We would be happy to see your active participation.
12th December 2006 From India, New Delhi
I have opened another topic on TDS on salary income- issued by Income tax department.
I have uploaded the complete circular for the year 2006-07.
The circular is having all details of taxable salary, exemptions, rebates and tax calculations with examples on certain situations to understand better.
You may view the topic.
13th December 2006 From India, New Delhi
I also have some queries & i also want to post my queries like u but i am unable to do that. Could any one tell me the process of posting queries. I will be very greatful to u.
waiting for ur response or comment. on same.
13th February 2007 From India, Mumbai
thanx a ton for your exhaustive information.
i have a querry if u can kindly help me... i am earning 7,20,000 per annum with no salary break ups.... can u please tell me as to how design my CTC as to get maximum tax benefit.
also tell me what are the allowances which are non taxable and to what extent... for eg. CCA etc.
please do reply soon..... if possible mail me at
14th March 2009 From India, Mumbai
visit:TaxIndiaUpdates | Service Tax, Central Excise, GST, Income Tax and Personal Finance
CA Jitendra Panwar
30th July 2015 From India, Bangalore