Salary Breakdown Confusion: Can Someone Help Verify My Basic, HRA, and Allowances?

Dear Sir,

My gross salary is 23,300. The basic pay is calculated at 11,880, HRA at 5,940, and other allowances at 5,480. I would like to confirm if these calculations are correct.

Thank you.

Dear Sanjay,

Yes, it is the correct calculation. Your basic is more than 50% of the gross, and your HRA is 50% of basic. Other components can be bifurcated into conveyance allowance, medical allowance, LTA, etc. for availing the exemption in Income tax. Since your basic is 11880/-, you will be a contributor to EPF as well. Salary bifurcation varies from company to company. Your Basic & HRA are correctly calculated. No doubt.

Thanks & Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws

Sanjay,

Bifurcation of gross wages and CTC into its components is a function HR of your company will do. It is entirely up to them to put what they want in the breakup. There is no fixed structure or norms. If they decide to put 100% in basic, even then you can't do anything.