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My company has hired a labor person to prepare a salary breakup for our employees. He prepared Basic with 56% to 57.7%. It varies with each and every employee. He also prepared HRA with 26% to 27%.

I am not able to figure out why he calculated with these odd percentages. I have experience preparing a salary breakup with only 30% Basic and 40% HRA. Can anyone help me determine if the breakup I received from the labor person is correct or not? Please help!

Thank you!

From India, Ahmedabad
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HRA Component is subject to Provisions of Income Tax Act, in force. Kritarth Consuling 5.3.19
From India, Delhi
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Glidor
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calculate the HRA with basic, it will figure out 50% approx which is the cap limit of HRA

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