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I need know basis payroll salary structures

Barani dharan (2 Points)

17 May 2018

what are thing all companies follows of payroll structures and how they will calculate

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195623 Points)
Replied 17 May 2018

Refer: 1. salary-structures-need-know

2. design-tax-friendly-ctc-employees

3. how-payroll-calculations-are-done

Vignesh (Finance executive) (256 Points)
Replied 17 May 2018

Sir this links are talk about how salary stracture is taxed and it focusing on employee point of view.Can I have HRA 45% of gross or not possible?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195623 Points)
Replied 17 May 2018

The HRA helps in reducing the taxable income that you are liable to pay. The HRA tax benefits are only applicable for those employees who stay in a rental accommodation. If an individual is staying in his/her own house, he/she won't be eligible to claim the amount for tax deductions.

The calculation of HRA is based on various factors, such as the entitlement to 50% of the basic salary, if the employee is staying in a metro city (40% for other cities). The calculation of HRA for tax benefit is considered from one of the following three listed provisions:

The actual amount allotted by the employer as the HRA.
Actual rent paid less 10% of the basic salary.
50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city).

1. The least of the above mentioned amount will be considered for tax deduction from HRA.

2. The HRA cannot exceed more than 50% of your basic salary.

3. The landlord's PAN card is mandatory for rent exceeding Rs.1,00,000 per year. The landlord can provide a self-declaration in case if he/she doesn't have a PAN card.

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Vignesh (Finance executive) (256 Points)
Replied 17 May 2018

Sir,

Whether company can have Salary Stracture 55% of Gross as basic and 45% of Gross as HRA.If Not.Please explain It.?We are Revising a salary stracture of our company.