Understanding CCA Allowance in Salary: Can Anyone Explain Its Role and Impact?

Dear all seniors and juniors, you are requested to help me out in describing the term "CCA allowance" in the salary structure. I am totally unaware of its execution and effectiveness. Presently, I am dealing with heads such as: Basic, HRA, Conv, Med Reimb, and CCA allowance.

Your prompt reply will be highly appreciated.

With regards,
Vikas Kumar

Hi Vikas,

CCA stands for City Compensatory Allowance. It is applicable for Tier-1 and Tier-2 cities, with 10% of basic + DA being the maximum. Some companies have set it at Rs. 850 for Tier-1 and Rs. 800 for Tier-2. CCA is only applicable for executive-level employees and above.

Cheers,
Karthik
Email: destination4success@yahoo.co.in

Dear Vikash,

CCA stands for City Compensatory Allowance. The objective of including this salary component is to provide an additional amount to meet the high expenses for individual employees either transferred or deputed to metro cities like Mumbai, Chennai, Kolkata, etc.

Regards,
Atul

Dear friends,

As per my view, CC allowance means Cost to Company. It includes all the facilities given by the employer to the employee, for example, Vehicle allowance, Home allowance, food, and other allowances. All these things make up the overall package of an employee; it is not cash in hand.

The Capital Cost Allowance is "a tax deduction that allows a business to claim for the loss in value of capital assets due to wear and tear or obsolescence".

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Senior Living Arizona