bandna rani
5

To
All seniors,
I am working as a HR Executive. Our company wants to mention CTC break up in appointment letter. One of my senior gave me a break up which mentioned below:-
Gross Salary- 21,000 pm
Annual CTC- 2,52,000
Bonus- 12600 (yearly paid basic)
Basic- 12600
HRA- 3675
Other Allowances- 3675
I am unable to find how he calculae HRA & OA...
Please explain me in detail.

From India, Jaipur
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Boss2966
Industrial Relations
Bijay_majumdar
Freelancer In Hr &indirect Taxes For
Sanjeev.Himachali
Hr & Od Consultant
Svsrana
Hr Head With Pmi
Santhosh862
Employee
Vikasdasta
Hr Generalist With Experience In Factory
Mirza
Regional Hr Head
Anuragdubey_007
Manager Recruitment
+1 Other

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mirza
18

Hi Rani,
Generally, when we do the salary bifurcation, we keep in mind the following % which helps in minimizing the TDS
Basic - 40% of Gross
HRA - 30% of Basic
Conveyance - 800 per month (As per the Law)
Other Allowance - Rest of the amount (This amount can be used fully or partially as Business related expenses (Fringe Benefits) to avoid the huge Taxes)
Thanks,

From Saudi Arabia, Jiddah
mirza
18

Gross - 500000 Basic - 40%*500000 = 200000 HRA - 30%*200000 = 60000 Conveyance - 800*12 = 9600 Other Allow = 230400 Hope this is clear now
From Saudi Arabia, Jiddah
boss2966
1164

Dear Mirza
Which law is restricting the Conveyance allowance as only Rs.800?
Many companies are paying more than that. (Even I am getting more).
Please clarify about the restriction on conveyance allowance.

From India, Kumbakonam
mirza
18

Hi Bhaskar, No one stopping to go beyond but you will be able to get the tax excemption only for 9600 per annum Hope this clarifies
From Saudi Arabia, Jiddah
bijay_majumdar
350

Hi, Attaching the format of ctc break up for your ref and na. Tax savings will have to be kept in mind while arranging the various salary heads. Thanks and regards Bijay
From India, Vadodara

Attached Files (Download Requires Membership)
File Type: xls sallary bifercation format.xls (19.5 KB, 4577 views)

jaynarayan.modi
17

Dear Mirza, Niter compulsory Rs. 800 per month nor mention in any Law. Between Office to Resident Income Tax Exempted maximum up to Rs. 800.00 per Month. No proof Required. Thanks, Regards, J.N.Modi
From India, New Delhi
venkatesh_padmanabhan
Hi,
The OA is nothing but the balance amount.The HRA is 12% of the basic and depends on the location/company. The other name of OA is special allowance. SPA is taxable, HRA you can claim benefit by producing rent agreements and receipt. Any more doubts contact me.
Venkatesh.P
9976105916

From Sri Lanka, Colombo
Sanjeev.Himachali
94

Venkatesh,
Where did you read that HRA is 12% of basics?? HRA is 50% of basics for metro cities and 40% of basics in non-metro cities.
What you MUST know about HRA

From India, Mumbai
vikasdasta
1

Hi Sanjeev, Under income tax act Medical Allowance is max 1250-/month. (15000-/year) and Conveyance Allowance is 800-/month ( 9600-/year).
From India, Gurgaon

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