Dear All,
I wanted to check whether we can reduce the amount of HRA and the reduced amount be added to any other head like conveyance, education allowance, etc., and the CTC remains unaffected. For example:
Previous structure:
- Basic: 12000
- HRA: 8000
- Gross: 20000
New structure:
- Basic: 12000
- HRA: 7000
- Edu: 200
- Conveyance: 800
- Total: 20000
Thank you.
From India, Mumbai
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1I wanted to check whether we can reduce the amount of HRA and the reduced amount be added to any other head like conveyance, education allowance, etc., and the CTC remains unaffected. For example:
Previous structure:
- Basic: 12000
- HRA: 8000
- Gross: 20000
New structure:
- Basic: 12000
- HRA: 7000
- Edu: 200
- Conveyance: 800
- Total: 20000
Thank you.
From India, Mumbai
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Yes, you can do it as proposed. The salary structure can be revised by the employer without affecting the CTC as the employee is still getting the same amount but under different heads. The example quoted by you also makes the package more tax-friendly in the hands of the employee.
Thanks & Regards, Avika
From India, New Delhi
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Thanks & Regards, Avika
From India, New Delhi
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