How Hra Is Defined In Salary - Xls Download

I am working in a small firm as hr exe I want to know in salary sheet how hra is defined and other variables too

Hai.........
Salary defined as....
Basic= 40% or 60% of the CTC
HRA=40-50%on Basic Salary (It depend whether the person put up in metro-50% or non metro city-40%)
Conv.all =800 (But conveyance cannot be more than Rs.800 because even 1 Rs. above it will make it taxable)
Spl.all= Balancing factor (This will be the overall remaining amount that you can put after all calculations)
A) Total= Sum of the above
PF=12% of the basic salary
ESI=1.75% (If applicable)
LTA/Medical= 8.33% of the Basic or one month Basic i.e. Basic/12 (But medical cannot be more than Rs.1250 because even 1 Rs. above it will make it taxable)
Bonus= Rs.700 (if applicable)
Gratuity= 4.81% of the basic
B) Total= Sum of the above
Total Monthly CTC= A+B
Annual CTC= (A+B)*12

Find the attachments also and modify the structure like your company policy...

Dear Nicky Khan,
Title of your thread is - How HRA is difined in salary?
In India, HRA is not compulsary except in two or three States there is an Act by which employer is made liable to pay HRA to employees under certain conditions.
HRA is defined on Basic Salary Compenent, certain percentage of it. There is no law as such to pay HRA as stated by our learned member Khaja Vali. Also there is no law which states that you have to pay basic at 40 or 60 percent of CTC.
Though this forum is an open forum in which any member has a right to express his views, my request to members that they should study first before writting any thing and refrain themself to give incorrect picture.

HI,
AS per your query the HRA Component is salary is required or not can be decided based on the following criteria.
1. to provide the opportunity in Income Tax Exemption. under Section 10
2. Company has not provided own premises to accommodate employee,
3. Employee has their own arrangement for the accommodation.
In view of the above the HRA can be fixed as Basic's 50% (If Metro) 40% if Other City.
With regards,
Suraj Kumar Biswal

Hi,
1) HRA is defined as half of your basic salary that is 50% of basic.
2) Basic will be 30% of the fixed pay.
3) HRA cannot be claimed against company paid accommodation.
4) Rental agreement or rent receipt copies has to be submitted post declaration completes.
5) Some organization's will collect proofs manually n some will go for online uploads.
Regards,
Aishvarya Varadharajan