Jeevarathnam
Sr. Manager Hr/admin
Tsivasankaran
Consultant
Rajiv505
Chartered Accountant
+2 Others

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Hi! Can someone give me break up for Rs 15000 salary and Rs 20000 salary with following components: 1)Basic 2)HRA 3)Conveyence Break up must be tax free. Thanks....
From India, Delhi
Hi Light,
You can use the following salary break ups :
Basic Salary
H.R.A
Conveyance Allowance
Medical Allowance
Business Attire Allowance
Vehicle Maintenance Allowance
Children Education Allowance
Books & Periodicals Allowance
Telephone Reimbursement
Food Plus Cards

From India, Vadodara
HI.
For salaries for 15000 & 20000 you shall make it as
Basic 50% on Gross
If your place on Metros HRA 60% on Basic
conveyance 800
Medical Allowance 1250
Remaining as Spl Allowance
for Gross Sal of Rs20000./- He or She will not fall on tax brackets

From India, Bangalore
Thanks jeevarathnam!
Is remaining Spl Allowance in above salary structure completely exempted from tax ?
I mean what will be the limit for tax exemption for things coming under remaining Spl Allowance?

From India, Delhi
In above salary structure, HRA component is "if your place on Metros HRA 60% on Basic". But i think for metros its 50%?
From India, Delhi
Check the structures required by you. For related tax computations, go to weblink provided therein.
From India, Gurgaon

Attached Files
File Type: pdf PS.pdf (203.5 KB, 86 views)

As per Section 10(13A), HRA exemption is availed as below:
Least of following is exempt:
i) 50% of Basic+DA for Metro cities (for Non-Metro cities it is 40%)
ii) Rent Paid less 10% of Basic+DA
iii) Actual HRA received

From India, Gurgaon
Basic 10000.00 13000.00
HRA @ 40% 4000.00 5200.00
[email protected]% 1000.00 1300.00
Total 15000.00 20000.00
This is very simple method Keeping HRA @40% and Conveyance @10% mof Basic works well for small Companies
Sivasankaran

From India, Chennai
Yes that's what i asked that its 50% for the metros. so in salary break given above in one of the reply as:
Basic 50% on Gross
If your place on Metros HRA 60% on Basic
conveyance 800
Medical Allowance 1250
Remaining as Spl Allowance
Is it valid to give HRA as 60% on basic?

From India, Delhi
There is no mandatory requirement in regard to %age of Basic or allowances.
Just ensure that Basic is not less than the minimum wages prescribed by your state government.
The 50% or 40% are taken to maximize tax savings.
You can certainly take HRA as 60% of Basic or even higher.
Rajiv

From India, Gurgaon
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