The HRA Calculations depend on the palce of residence.
For metro HRA can not exceed 50 % of basic Salary
For non metro its 40%.
However HRA has impact on IT if it exceeds the limits.
Dear Friends,
Below given points are to be considered while discussing:
1. Where it is written that salary is to be splitted in to various components including HRA?
2. Is there any law to pay HRA?
3. When there is no law then why we pay it is?
4. What is the meaning of allowance? Can the quantum of any allowance be more than salary?
5. Is there any policy in place for payment of HRA mentioning therein specifically the purpose for payment of HRA and % age thereof so that the same can be explained to the authority that the same payment is not camouflage or not intended to deceive someone?
6. What will happen when COW will be implemented wherein there is a provision that when excluded wages exceeds 50% of wages then the excess amount of 50% will be treated as wages?
THE MAHARASHTRA WORKMEN'S MINIMUM HOUSE RENT ALLOWANCE ACT, 1983 is the reference for Governing applicability of HRA in the state.
Pls share any other state has this act in place.
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