What is the percentage of calculation of HRA on basic in CTC as per act?
From India, Kolkata
From India, Kolkata
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
CTC (Cost to company) is basically a term that HR created to fool the candidates and employees into thinking they are paid more than they are actually given.
The term is not recognised in any labour law in India and not defined anywhere.
Therefore, you are free to chose what % you wish to have.
However, please check the income tax requirements on HRA as it will make a difference to the amount of tax paid by the employee and put the % as applicable. Generally, people consider between 30% and 45% of Gross as HRA
From India, Mumbai
2364The term is not recognised in any labour law in India and not defined anywhere.
Therefore, you are free to chose what % you wish to have.
However, please check the income tax requirements on HRA as it will make a difference to the amount of tax paid by the employee and put the % as applicable. Generally, people consider between 30% and 45% of Gross as HRA
From India, Mumbai
HRA Calculation.xls