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
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
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CTC Breakup.xls
CTC - Breakup.JPG