HRA Calculations - CiteHR
Atulmalve
Senior Manager-hr, Er & Admin
+1 Other

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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..
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Hi,
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.
Regards,
Atul S Malve
Manager- HR & Admin
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....
pradeep
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