Asst. General Manager - Hr
Recruitment, Labour Laws, Skill Mapping,
Professional - Exectutive Hr
Yes an employer can keep different HRA rates in same establishment, once he pays more % than the min.HRA fixed by statute. In maharahstra we have House rent allowance act. According to it, an employer has to pay min.5% HRA on (Basic+da) or consolidated Basic salary. However, we have 3 different HRA % .
2nd September 2010 From India, Nagpur
here is the small article which im sharing with you..
When you are calculating HRA for tax exemption you take into consideration four aspects which includes salary, HRA received, the actual rent paid and where you reside, i.e. if it is a metro or non-metro.
If these aspects remain constant through the year, then tax exemption is calculated as a whole annually, if this is subject to change, as in a rent hike or shift in residence etc. then it is calculated on a monthly basis.
The place of residence is significant in HRA calculation as for a metro the tax exemption for HRA is 50% of the basic salary while for non-metros it is 40% of the basic salary.
please let us know if you need any more info...or do a search in this site already there are many articles on it..
3rd September 2010 From India, Bangalore
I agree with Ajay, in an organization HRA can be different for employees based on their Location. For Example a company in Gurgaon gives 40% of basic as HRA to the employee staying in Gurgaon while gives 50% of basic as HRA to the employee staying in Delhi.
But with regard to your question it should not be based on employee experience...
3rd September 2010 From India, Gurgaon
Our company has just revised the percentage for HRA and the employees are all working in the same location (about 10) and employees who have joined in the last year for whom the slab is still the previous one.
The newer joinees get the revised percentage, same with the older ones, but the employees with less than a year in the organization fall in the prior slab.. It really looked uneven to me, so i posed the question.
Thanks again for the help.
3rd September 2010 From India, Mumbai
- Your employee strength is very small and probably you are not having standard rules and procedures in place.
- Generally Salary Structure in case of same grade employees has to be uniform and their HRA %age also should be same.
- HRA %age can be different for different grades or it may be different according to nature of job and responsibility. For example HRA for Officers will be 30% but for Clerk/Assistant it could be 20%. However it is expected that uniformity in HRA %age is maintained within those specific categories of Officers and Clerks/Assistants.
4th September 2010 From India, Pune
I am so confused on this so please help. Hoping for a reply
28th July 2012 From India, Indore
House Rent Exemption Under Section 10(13A) Read with Rule 2A | StudyCafe.in
23rd February 2014 From India, New Delhi