1. #1
    Unregistered

    What do you mean by HRA and how it is calculated from salary?

    Every month i get my payslip. I see that there is one element in my payslip other than basic salary, medical allowance, ESI etc.. and that is HRA. What do you mean by HRA and how is it calculated from salary? Does HRA also count in IT? Please guide.

  2. #2
    prabhu Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Hi,


    HRA stands for Home Rent Allowance

    HRA is considered as a component in salary in all companies

    HRA is provided for employees expenses towards home rent

    HRA amount will increase whenever there is increment in designation and salary hike

    HRA is 100% non -taxable . It will not be accounted for TAX acording to Income Tax rules act



    @@@ Thanks

  3. #3
    mahi4mk Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    HELLO ASPIRANTS,
    HR is a department of salary distrubuted for employe.
    HRA stand for home rent allowance and salary
    increase ya decrease depends your prfomance.
    So, you work hard your job and you get promotion.
    HR provide expences and medical, ESI etc.
    He is not a accountant only Head of HR department that it.
    GOOD LUCK

  4. #4
    looser Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Hi friend,

    HRA is the HOME RENT ALLOWANCE.

    HRA is provided by the companies to its employees who have their stay in metro cities.

    Most of the IT companies do not provide their employess the HRA, but all the GOVT organisations do provide its employees with HRA, TDA and all other allowances.

    I would like to suggest you a link, you go through the link and fill all the details that are marked YELLOW in the HRA CALCULATOR.

    http://www.simpletaxindia.org/2008/03/hra-exemption-how-to-calculate.html

    By filling all the details you can calculate the HRA of your basic salary.

    thanking you.

  5. #5
    imman Array
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    Post Re: What do you mean by HRA and how it is calculated from salary?

    ~~ HI ~~



    ~~ HRA ~~

    ~_~ It is nothing but Home Rent Allowance ~_~

    ~_~
    it is paid by the employers to employees if he/she need allowance for living but at the same time the company should have this scheme too ~_~

    ~_~
    Rent paid in excess of 10% in basic salary ~_~

    ~_~
    If your location of residence is in a non-metro city then it is calculated as 40% of basic salary ~_~

    ~_~
    If your location of residence is in the metro-city then it is calculated as 50% of basic salary ~_~

    ~_~
    HRA doesn't comes under tax slab ~_~





    ~~ Thank you ~~

  6. #6
    Ashok Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Dear Friend,

    HRA stands for house rent allowance.

    IT is paid to all employees provided you have not been alloted a govt./company's quarter.

    At present it varies from 7.5% to 30%.

    It is caculated on the amount of pay and grade pay.

    In pvt. company,there may not be provision of grade pay.

    Suppose your present basic pay is Rs 15000/including or excluding grade pay and your are working in B1 city like patna,then you will be getting 20% HRA i.e Rs 3000/per month.

    The HRA amount is exempted from income tax with some conditions.


    Thanks.

  7. #7
    sairam6 Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Hai friends

    hra stands for the house rent allowance

    in the it companies their give a quarters,if you are not living in the quarters ,you can go the city

    then the company is paying the hra

    suppose your salary is 15000

    and your paying the rent 7000

    and you get the hra is 8000

    only few of the it companies is giving this stream

    it is more popular in the government sectors

    hope this information helps you

    good luck

  8. #8
    vikram24491 Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    HRA is house rent allowance. it is a non-taxable amount of your salary that your employer pays you for paying the rent of the house you are staying in. this however, is only applicable if you have to pay rent for accommodation. if you are staying at a house that you own then you are ineligible for the HRA.

  9. #9
    abbebo Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Hi. HRA is House rent allowance given by the employer and it forms part of taxable Salary. However, under the Income Tax Act, 1961 exemption from HRA is available under section 10(13A). The least of the following is exempt from actual HRA received:-
    (i)40%(50% if at Delhi, MUmbai, Kolkata or Chennai, Else it is 40%) of salary . (salary here means Basic pay+ D.A that Forms part of retirement benefits+ commission as a fixed % of sales , If any)
    (ii) Rent Paid less 10% of salary
    (iii) actual HRA received
    The exemption is calculated for the period when house is taken on rent.

    Best of luck. Thanks

  10. #10
    Boss Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    HRA is that the HOME RENT ALLOWANCE.

    HRA is provided by the businesses to its workers WHO have their keep in railroad line cities.

    Most of the IT firms don't give their employess the HRA, however all the govt. organizations do give its workers with HRA, TDA and {every one} alternative allowances.

    HRA is House rent allowance given by the leader and it forms half of} ratable regular payment. However, underneath the revenue enhancement Act, 1961 exemption from HRA is out there underneath section 10(13A). the smallest amount of the subsequent is exempt from actual HRA received:-
    (i)40%(50% if at Old Delhi, MUmbai, city or urban center, Else it's 40%) of regular payment . (salary here suggests that Basic pay+ D.A that Forms a part of retirement benefits+ commission as a set take advantage of sales , If any)
    (ii) Rent Paid less 100% of regular payment
    (iii) actual HRA received
    The exemption is calculated for the amount once home is taken on rent.

    HRA is house rent allowance. it's a non-taxable quantity of your regular payment that your leader pays you for paying the rent of the house you're staying in. this but, is barely applicable if you have got to pay rent for accommodation. if you're staying at a house that you just own then you're ineligible for the HRA.

  11. #11
    Param Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Dear Friend!

    HRA stand for "House Rent Allowance" the allowance give if one is not residing in company accommodation. HRA is 100% tax payable free. And you get increase in hra as well when your salary are increase. Rent pay less than 10% of salary. HRA is depend on your basic salary. If your basic salary is high you get hra high too.

  12. #12
    manas.career Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    Hi ,

    HRA stands for house rent allowance.
    It is a non-taxable amount of your salary that your employer pays you for paying the rent of the house you are staying in.

    It is caculated on the amount of pay and grade pay.
    In pvt. company,there may not be provision of grade pay
    This however, is only applicable if you have to pay rent for accommodation. if you are staying at a house that you own then you are ineligible for the HRA.

    Thank you .


  13. #13
    mayankdevills Array
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    Re: What do you mean by HRA and how it is calculated from salary?

    HRA STANDS FOR HOME RENTAL ALLOWANCE

    HRA is basically an allowance, which forms a part of ones taxable salary. It is not mandatory for the employer to give HRA. But, if an employer chooses to offer the allowance, one will receive it whether or not he owns a house, pays EMI on the home loan, pays rent, or lives with his parents.


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