The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>India Taxes

Components of salary slip considered for calculating HRA in India?

I badly need advise on calculation of my HRA. Below are the components of my salary besides my PF and PT. Please advise which components should I consider for the computation of HRA.

BASIC
HRA
CONVEYANCE ALLOWANCE
MOBILE ALLOWANCE
GRADE ALLOWANCE
SPECIAL ALLOWANCE
LOCAL CONVEYANCE
OTHER

HARDSHIP ALLOWANCE
I know about the 3 points for computing HRA.
HRA is exempt to the extent of the least of the following:

1) The actual amount of HRA received.
2) 40% of salary (basic component + dearness allowance). This increases to 50% if you are renting out the house in Delhi, Mumbai, Chennai or Kolkata.

3) Rent paid minus 10% of Salary (basic component + dearness allowance)

Since I have no dearness allowance as listed in my salary breakup and I live in Mumbai, I want to know that from the remaining components which should I consider for the computation of HRA.

we consider Retirement Benefit Salary (RBS) for calculation of HRA.

RBS consist of following three components only :-

(1) Basic Pay
(2) D.A. forming Part of Salary
(3) Fixed % of Commission on sales if any.

as in ur case there is nothing except Basic, therefore ur basic only will only considered for HRA

Tags
　　United States Taxes 　　United Kingdom Taxes 　　Spain Taxes 　　Singapore Taxes 　　Mexico Taxes 　　Ireland Taxes 　　India Taxes 　　Germany Taxes 　　Canada Taxes 　　Australia Taxes 　　Small Business
Related information
  • Can i have multiple Demat account for one pan card ?

    Like bank accounts, you can have any number of demat accounts. You can make a Guinness World Record for Demat accounts. You should have a PAN card to open the Demat A/c. But remember that you shoul...

  • Is fixed deposit in a Bank in India is a wealth tax liability or not?

    Bank FD, cash in bank (SB or Current A/c), shares, debentures, one house or one plot (less then 600 sq.yds), agriculture land, cash in hand less than Rs.50,000 , plot 8 kms away from notified ares ...

  • Should I mention the service tax No?

    Whether your billing is above Rs 8 Lakh in a financial year? If yes; U R required to have registration from service tax and pay service tax. Click on the link below for service tax registration f...

  • Where can i invest ? like ( lic money plus or..) .50 lac with tax benefit n good return?

    Don't go for LIC money plus. Last year march till now it has fetched only Rs.2.40 per unit. That too after opting for Growth fund (Total investment in shares). The index from last year marc...

  • Is the Rs 2 lakh limit for declaring MF purchases in AIR applicable to single purchase or over entire year?

    Over entire year. That means if you buy 1.5 lakhs once and later 60 thousands, that means you have purchased for 2.1 lakhs. It applies mutual fund wise. Your total investment will be totaled on yo...

  • TDS; help is required?

    According to your salary, your 5 and half months salary will be only Rs.1.54 lakhs. Less Tax exemption Rs.1.1 lakhs. Your net taxable income is Rs.44 thousands. The tax you have to pay is Rs.4800...

  • When our india going to a role model?

    India had been already role model. One of the western philosopher said "Indians are already SEARCHED. What we are doing is RESEARCH (Re search) of the same". Already India is a role mo...

  • Is there a category of pan numbers whose details are not uploaded on incometaxingindia.gov.in?

    Not like that. No categories in PAN. All PAN cards are equal in status. Persons authorised by Income Tax department can see the details of any PAN and can download the details.

    ...
    • 　

    Commerce Categories--Copyright/IP Policy--Contact Webmaster