Hr Consultant
Korgaonkar K A

Dear Seniors,
Greetings of the day!!
I have a query pertaining to contract to hire position.
Can the person working on contract to hire profile have salary bifurcation of Basic,HRA, LTA,Medical, conveyance etc.. can he enjoy the HRA benefit for tax benefit.
looking for your inputs on the same.

From India, Pune
Dear Sai ji,
Your query relates to HRA exemption under IT and answer to it as under:
If you are paying HRA to an employee and the employee stays in rented house and paying rent, he can avail HRA exemption from his income, at the amount least of following:
1. Actual HRA paid;
2. 50% (in case of metros) or 40% (in case of other than metros) of Basic +DA; &
3. Rent paid minus 10% of Basic+DA.
Hope you understand it.

From India, Mumbai
Dear Sai ji,
Your query is pertaining to HRA exemption only. Therefore my above answer is restrictred to HRA exemption only. However, I would like to tell you that, employee can also avail LTA, Medical & Conveyance exemption, subject to certain Conditions.

From India, Mumbai
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