What is minimum limit of House Rent Allowance in private companies in Bangalore? Maximum is 50% in Urban and 40% is Non-urban,, M i right?
From India, Bangalore
1From India, Bangalore
Hi There is nothing as Minimum HRA. If you declare HRA less than the exempted amount then if the employee is tax payee then he/she will be ending up in paying more IT.
From India, Bangalore
From India, Bangalore
Thanks Jeevarathnam, I wanted to know if there is any minimum limit set from employer?
As I am getting HRA as 11% of my basics, and I'm living in rented house. generally it is 40%, so at end of year I will end up paying more tax.
Is there way I can ask for more HRA by reducing amount from my spacial allowances (keeping CTC same)?
From India, Bangalore
As I am getting HRA as 11% of my basics, and I'm living in rented house. generally it is 40%, so at end of year I will end up paying more tax.
Is there way I can ask for more HRA by reducing amount from my spacial allowances (keeping CTC same)?
From India, Bangalore
Shruti,
There is no fixed rules that what percentage of your basic should be your HRA. It depends upon company to company.
1) Actual house rent allowance received from your employer
2) Actual house rent paid by you minus 10% of your basic salary
3) 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Warm Regards,
Vilok Nandan
From India, Pune
There is no fixed rules that what percentage of your basic should be your HRA. It depends upon company to company.
1) Actual house rent allowance received from your employer
2) Actual house rent paid by you minus 10% of your basic salary
3) 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Warm Regards,
Vilok Nandan
From India, Pune
Speak to your HR, if company policy permits to change the HRA Vs. Spl. Allowance, it is always advisable and also HR/Finance do keep employees benefit in mind before finalizing the Salary Structure.
From India, Ahmadabad
From India, Ahmadabad
Dear All,
Its almost the same question.
I'm employer setting up different pays for employee. In Bangalore can i set any minimum % as HRA to my housekeeping employees(Minimum wages ranges from 7,751 to 12K,..based on profile). Housekeeping folks wont generally be earning much to pay tax.
My question is can i set 7% or 8% or any minimum % for their HRA.
I understand the maximum slab 40% and 50%. But my question is on the minimum percentage.
thank for clarification.
From India, Bangalore
Its almost the same question.
I'm employer setting up different pays for employee. In Bangalore can i set any minimum % as HRA to my housekeeping employees(Minimum wages ranges from 7,751 to 12K,..based on profile). Housekeeping folks wont generally be earning much to pay tax.
My question is can i set 7% or 8% or any minimum % for their HRA.
I understand the maximum slab 40% and 50%. But my question is on the minimum percentage.
thank for clarification.
From India, Bangalore
Dear Seniors,
Presently one employee gets gross salary 13000. (basic+DA= 8375, HRA=2570, Conveyance=1600 & Other Allowance= 455)
As per min. wages 2018 his basic + DA supposed to be 14100.
Can i increase Basic+DA to 14100 and keep rest components zero?
Is paying HRA compulsory?
Thanks & regards,
PJd
From India, Bangalore
Presently one employee gets gross salary 13000. (basic+DA= 8375, HRA=2570, Conveyance=1600 & Other Allowance= 455)
As per min. wages 2018 his basic + DA supposed to be 14100.
Can i increase Basic+DA to 14100 and keep rest components zero?
Is paying HRA compulsory?
Thanks & regards,
PJd
From India, Bangalore
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Workmens-minimu m-house-rent-al lowance-act-198 3.pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls