Senior Manager-hr, Er & Admin
+1 Other

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear Friends,
I have a doubt on HRA. Can we calculate HRA on GROSS SALARY while preparing the CTC breakup? As far as my knowledge is concern HRA is calculated on BASIC Salary. Please give your comments on this...
It's a little urgent..
Looking forward to some prompt responses friends..

From India, Pune
You are right! HRA is a subsidisery allowances and it has to be considered on basis and not on gross. Gross is the sum of all the payable factors and allowance, either in monthly of daily mode.
As per The Minimum HRA Act, the HRA should be at least 5% of the Basic. In such a case, you can have certain % (not less than 5%) as HRA on Basic and which will be the part of your gross salary structure.
Hope you will find it helpful.
Atul S Malve
Manager- HR & Admin

From India, Sholapur
HRA is calculate on Basic + DA amount of wages and it is 40 % for Non-Metro cities and 50 % for Metro Cities.
and after that for the purpose of Tax Exemption, there are certain rules of HRA....

From India, Gurgaon
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™