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city compensatory allowance

srikumar (audit staff) (1203 Points)

25 June 2019

employee salary calculating tds, CCA RS. 5000 per month is allowed or exempt, ? CCA paying only fixed amount for decided.

any percentage is allowed for CCA or any amount paying ?

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (169040 Points)
Replied 25 June 2019

CCA is fully taxable and is added to the income of the employee for tax calculation purpose.

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srikumar (audit staff) (1203 Points)
Replied 25 June 2019

how to calculate CCA sir

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (169040 Points)
Replied 25 June 2019

There is no formula for CCA. It is entirely at the discretion of employers to determine the pay structure it follows, i.e. they can pay consolidated salaries also or can divide the salary into basic plus allowances.

The primary criterion taken into account while computing CCA by employers is the cost of living index in a particular city and their respective employment policies. In a private organization where different categories of employees have different pay scales, City Compensatory Allowance is paid as a fixed amount and not as a percentage of the basic pay.