Hi All, can i calculate the HRA and Conveyance from gross salary? I heard that both should calculate on Basic only. kindly let me know ASAP.
From India, Hyderabad
Acknowledge(0)
Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
HRA can be computed on Basic (as it becomes easy to calculate its impact on income tax), whereas conveyance should be kept independent of Basic. Conveyance of INR 9,600/- is exempted from income tax, and this has been raised in the current budget to INR 19,200/-. So the conveyance amount should be kept fixed at 9,600 or 19,200 so that your employees can avail the maximum benefit regarding income tax.
Regards,
A.B.
From India, Mumbai
Acknowledge(0)Amend(0)
38Regards,
A.B.
From India, Mumbai
Acknowledge(0)Amend(0)
There is no hard and fast rule that HRA and conveyance can only be calculated based on Basic. The calculation pattern/formula is 50% of Basic for Metros and 40% for Non-Metros can be taken as HRA as a maximum. Regarding conveyance, the maximum tax exemption limit is Rs. 9,600/- per annum for the financial year 2014-15.
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
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 SHEET CALCULATION.xls
Salary calculation.doc