Dear Forum Members,
We are in the process of restructuring our salary structures. Currently, we have the HRA component set at 40% of the basic salary. We would like to inquire if it is possible to increase the HRA component to 60% of the Basic. Your input on this matter would greatly assist us in the restructuring process.
Thank you,
Sharath
From India, Hyderabad
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We are in the process of restructuring our salary structures. Currently, we have the HRA component set at 40% of the basic salary. We would like to inquire if it is possible to increase the HRA component to 60% of the Basic. Your input on this matter would greatly assist us in the restructuring process.
Thank you,
Sharath
From India, Hyderabad
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Hi Sharath, HRA component - 40% of basic in non-metros & 50% of basic in metros is admissible for tax exemption. Regards R.Ponraj
From India, Lucknow
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616From India, Lucknow
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Hi Sharath,
As such, there is no ceiling percentage for fixing the HRA component. You can fix it at 60% of the basic. However, as stated by R. Ponraj, only 40% in non-metros and 50% in metros will be considered for tax exemption. The remaining amount will be counted as taxable income.
Regards,
Gaurang
From India, Ahmadabad
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As such, there is no ceiling percentage for fixing the HRA component. You can fix it at 60% of the basic. However, as stated by R. Ponraj, only 40% in non-metros and 50% in metros will be considered for tax exemption. The remaining amount will be counted as taxable income.
Regards,
Gaurang
From India, Ahmadabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls