21 February 2018
Dear all To what extent any employer can pay HRA to his employee. Like if employee basic salary is Rs. 10000 then can employer pay him HRA to the extent of 50% of basic salary i.e. Rs. 5000, being total salary Rs. 15000. Please note that I am not asking about taxability limit of HRA.
21 February 2018
The decision of how much HRA needs to be paid to the employee is made by the employer based on certain criteria viz., the basic salary and the city of residence, more particularly the terms of employment and there is no hard and fast rules in case of non government employer.