HRA and tax exemption on the total CTC
A client of mine is proposing to split 55% of the total CTC to various allowances and perks. Out of this, he is proposing to allocate 15% to HRA. He lives in his own house; therefore, I understand he needs to pay the tax on this. If this is the case, what is the benefit of declaring this sum as HRA in the first place? If he kept it as his base, would he not enjoy a higher gratuity? Please help shed some light.
From Singapore, Singapore
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A client of mine is proposing to split 55% of the total CTC to various allowances and perks. Out of this, he is proposing to allocate 15% to HRA. He lives in his own house; therefore, I understand he needs to pay the tax on this. If this is the case, what is the benefit of declaring this sum as HRA in the first place? If he kept it as his base, would he not enjoy a higher gratuity? Please help shed some light.
From Singapore, Singapore
Acknowledge(0)Amend(0)
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