To
All seniors,
I am working as a HR Executive. Our company wants to mention CTC break up in appointment letter. One of my senior gave me a break up which mentioned below:-
Gross Salary- 21,000 pm
Annual CTC- 2,52,000
Bonus- 12600 (yearly paid basic)
Basic- 12600
HRA- 3675
Other Allowances- 3675
I am unable to find how he calculae HRA & OA...
Please explain me in detail.
From India, Jaipur
5All seniors,
I am working as a HR Executive. Our company wants to mention CTC break up in appointment letter. One of my senior gave me a break up which mentioned below:-
Gross Salary- 21,000 pm
Annual CTC- 2,52,000
Bonus- 12600 (yearly paid basic)
Basic- 12600
HRA- 3675
Other Allowances- 3675
I am unable to find how he calculae HRA & OA...
Please explain me in detail.
From India, Jaipur
Hi Rani,
Generally, when we do the salary bifurcation, we keep in mind the following % which helps in minimizing the TDS
Basic - 40% of Gross
HRA - 30% of Basic
Conveyance - 800 per month (As per the Law)
Other Allowance - Rest of the amount (This amount can be used fully or partially as Business related expenses (Fringe Benefits) to avoid the huge Taxes)
Thanks,
From Saudi Arabia, Jiddah
Generally, when we do the salary bifurcation, we keep in mind the following % which helps in minimizing the TDS
Basic - 40% of Gross
HRA - 30% of Basic
Conveyance - 800 per month (As per the Law)
Other Allowance - Rest of the amount (This amount can be used fully or partially as Business related expenses (Fringe Benefits) to avoid the huge Taxes)
Thanks,
From Saudi Arabia, Jiddah
Gross - 500000 Basic - 40%*500000 = 200000 HRA - 30%*200000 = 60000 Conveyance - 800*12 = 9600 Other Allow = 230400 Hope this is clear now
From Saudi Arabia, Jiddah
From Saudi Arabia, Jiddah
Dear Mirza
Which law is restricting the Conveyance allowance as only Rs.800?
Many companies are paying more than that. (Even I am getting more).
Please clarify about the restriction on conveyance allowance.
From India, Kumbakonam
Which law is restricting the Conveyance allowance as only Rs.800?
Many companies are paying more than that. (Even I am getting more).
Please clarify about the restriction on conveyance allowance.
From India, Kumbakonam
Hi Bhaskar, No one stopping to go beyond but you will be able to get the tax excemption only for 9600 per annum Hope this clarifies
From Saudi Arabia, Jiddah
From Saudi Arabia, Jiddah
Hi, Attaching the format of ctc break up for your ref and na. Tax savings will have to be kept in mind while arranging the various salary heads. Thanks and regards Bijay
From India, Vadodara
From India, Vadodara
Dear Mirza, Niter compulsory Rs. 800 per month nor mention in any Law. Between Office to Resident Income Tax Exempted maximum up to Rs. 800.00 per Month. No proof Required. Thanks, Regards, J.N.Modi
From India, New Delhi
From India, New Delhi
Hi,
The OA is nothing but the balance amount.The HRA is 12% of the basic and depends on the location/company. The other name of OA is special allowance. SPA is taxable, HRA you can claim benefit by producing rent agreements and receipt. Any more doubts contact me.
Venkatesh.P
9976105916
From Sri Lanka, Colombo
The OA is nothing but the balance amount.The HRA is 12% of the basic and depends on the location/company. The other name of OA is special allowance. SPA is taxable, HRA you can claim benefit by producing rent agreements and receipt. Any more doubts contact me.
Venkatesh.P
9976105916
From Sri Lanka, Colombo
Venkatesh,
Where did you read that HRA is 12% of basics?? HRA is 50% of basics for metro cities and 40% of basics in non-metro cities.
What you MUST know about HRA
From India, Mumbai
Where did you read that HRA is 12% of basics?? HRA is 50% of basics for metro cities and 40% of basics in non-metro cities.
What you MUST know about HRA
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
CTC Breakup.xls
CTC - Breakup.JPG