Can We Adjust HRA Without Changing the Overall CTC? Seeking Advice on Salary Structure Adjustments

Dear All,

I wanted to check whether we can reduce the amount of HRA and the reduced amount be added to any other head like conveyance, education allowance, etc., and the CTC remains unaffected. For example:

Previous structure:
- Basic: 12000
- HRA: 8000
- Gross: 20000

New structure:
- Basic: 12000
- HRA: 7000
- Edu: 200
- Conveyance: 800
- Total: 20000

Thank you.

Yes, you can do it as proposed. The salary structure can be revised by the employer without affecting the CTC as the employee is still getting the same amount but under different heads. The example quoted by you also makes the package more tax-friendly in the hands of the employee.

Thanks & Regards, Avika

HRA can be brought down to ₹6000 and medical assistance may be included for more tax benefits.