House Rent Allowance or HRA: The allowance is for expenses related to rented accommodation. Salaried individuals who live in a rented house/apartment can claim House Rent Allowance or HRA to lower taxes. This can be partially or completely exempt from taxes. Our articleHRA Exemption,Calculation,Ta...
The fundamental change is the limit on the allowances set by the new rules. All allowances put together should not exceed more than 50% of the salary package. This in turn will impact the calculation of Basic and PF components. An increase in basic salary will attract more tax. Increased ...
The salary calculation formula also tells the employee about their standing in the company and determines whether they are underpaid or overpaid. The salary formula is useful when the company plans and implements the initiative for reducing human resource costs. Moreover, the calculator can be helpfu...