My question is, if I get a salary of 4 lacs per annum, how much should be my MAX and MIN basic salary, special allowance, HRA, LTA, conveyance, etc.? I need a breakdown of the 4 lacs in line with the rules and regulations of income tax, labor laws, etc.
From India, Hyderabad
Acknowledge(2)
Amend(0)
3From India, Hyderabad
Acknowledge(2)Amend(0)
Hi, I think every company has its own payroll formula.Like in my company we prepare like CTC/75000. Then its automatically calculate Basic, HRA, PF, DA etc.
From India, Bhubaneswar
Acknowledge(0)Amend(0)
From India, Bhubaneswar
Acknowledge(0)Amend(0)
Thanx for your reply But can you explain any rationality of the formula you are applying. I am more looking at that aspect.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi,
Every company follows its method of calculating the basics. The most appropriate method is that 40% of your package is your basic salary, and 50% of your basic salary is your HRA. For example, if the CTC is 210000, then your basic will be 7000 monthly, and your HRA will be 3500 monthly. I hope this will clear all your doubts. If you still have questions, please contact me at amanpreet_bedi@yahoo.com.
Regards,
Amanpreet Bedi
From India, Mumbai
Acknowledge(0)Amend(0)
Every company follows its method of calculating the basics. The most appropriate method is that 40% of your package is your basic salary, and 50% of your basic salary is your HRA. For example, if the CTC is 210000, then your basic will be 7000 monthly, and your HRA will be 3500 monthly. I hope this will clear all your doubts. If you still have questions, please contact me at amanpreet_bedi@yahoo.com.
Regards,
Amanpreet Bedi
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for your reply.
In your response, you mentioned that 50% of the basic salary is allocated to HRA for income tax purposes, but only 40% of the total salary (basic + DA + commission) is exempt. Of course, there are other conditions to consider. However, if you keep the HRA component equal to or less than 40%, it would simplify the calculations for income tax. (In metropolitan cities, 50% of the salary is exempt.)
My main goal is to determine if there is a law, rule, or act that specifies the fixation of the basic salary component.
Rutu
From India, Hyderabad
Acknowledge(0)Amend(0)
In your response, you mentioned that 50% of the basic salary is allocated to HRA for income tax purposes, but only 40% of the total salary (basic + DA + commission) is exempt. Of course, there are other conditions to consider. However, if you keep the HRA component equal to or less than 40%, it would simplify the calculations for income tax. (In metropolitan cities, 50% of the salary is exempt.)
My main goal is to determine if there is a law, rule, or act that specifies the fixation of the basic salary component.
Rutu
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY CALCULATOR & INCOME TAX.zip
Income Tax Calculation 2009-10 - Salaries.xls