Hra

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2012 How many HRA allowance employer can offer to employee with the calculation of basic salary?
Means if salary is 10000p.m then can employer can allowed HRA 8000 p.m. or more

Guest

Guest (Expert)

08 July 2012 The exepmtion in HRA is available to the extent of least of below:
1. 50% of salary in case of metro cities else 40%.
2. Actual HRA received
3. Rent paid over and above 10% of Salary

*Salary here means Basic salary and Dearness Allowance if it forms part of retirement benefits.

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2012 THANK YOU Mr. KETAN FOR REPLY, BUT MY QUESTION IS NOT THAT, I WANT TO KNOW LIMIT TO WHICH EXTENT; WE CAN GIVE HRA ALLOWANCE TO EMPLOYEE WITH RELATION OF BASIC SALARY. I HAVE PROPRITORSHIP CONCIRN FIRM WANT TO GIVE HRA ALLOWANCE TO EMPLOYEE. SO IS THERE ANY RATIO WITH BASIC SALARY TO CALCULATE HRA ALLOWANCE. OR NOT IF NO, THEN CAN ANY AMOUNT OF HRA CAN WE OFFER TO OUR EMPLOYEE.

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Guest

Guest (Expert)

09 July 2012 Its already mentioned in 1st condition : 50% of salary in case of metro cities else 40%

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2012 Thank You Mr. Ketan for your kind help