Can HRA Be 20% Of Basic?

JyotiKhurana

We are currently thinking to modify salary structure and give 70% of gross as Basic and 20% as HRA. Is it completely company to decide or is there any law governing this. The company is based in Delhi-NCR.
What is the implication?
IS it ok to give 20% as HRA?
22nd March 2017 From United States, Fairfield

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jeevarathnam

639

Hi.
Yes you can consider HRA as 20%. There is no any rules to restrict HRA. But if any employee is coming under taxable bracket then his/her Income Tax will be more.
As per Income Tax the exemption of HRA is 40% for Non Metro & 50% for Metro
23rd March 2017 From India, Bangalore

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