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 taz on this. If this is the case what is the benefit oif 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 to shed some light.
From Singapore, Singapore
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 taz on this. If this is the case what is the benefit oif 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 to shed some light.
From Singapore, Singapore
dear it should not be individual choice.you should have policy about HRA. generally company keep HRA 40-50% of basic.however legally no hitch in doing this. regards js malik
From India, Delhi
167From India, Delhi
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Tax Exemption (SUPERB).doc
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