In what percentage basic is alloted on gross earned salary ?

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Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2016 An employee is allotted salary of Rs: 50000 p.m. in Basic, HRA, Education allowance, Hostel Allowance, Personal Development allowance. my question is upto what % can i distribute amount amongst them as per rule?

thanks......

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

20 January 2016 YOU CAN ALLOCATE 50% BASIC ( SHOULD NOT BE LESS THAN MINIMUM WAGES ACT), 40% OF BASIC HRA, 1600 CA & BALANCE OA

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2016 Kaviraja ji,
1) What is 1600 CA & Balance OA

2) Calculation should be Like this?
Basic : 50000x50%: 25000
HRA : 25000x40%: 10000
Can rest of the amount Rs 15000/- be distributed between 3 allowances as mentioned above as per employer option?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

20 January 2016 CA IS CONCVEYANCE ALLOWANCE AS PER INCOME TAX YOU GET BENIFIT RS.1600/- P.M , OA IS YOU CAN GROUP OTHER ALLOWANCES NO PARAMETER, IF YOU WANT YOU CAN ADD MEDICAL ALLOWANCE RS.1250/- P.M (MEDICAL BILL TO BE OBTAINED)

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2016 Is exemption on medical allowance is available? Isn't treated as perquisites ?

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