Hello can any one suggest what is the minium perce...
# announcements
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Hello can any one suggest what is the minium percentage should consider for HRA, in salary componant
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50% of the basics
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50% of basic salary in metros and 40% of basic salary in non metros
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As per Indian tax laws, there is no specific minimum percentage of HRA (House Rent Allowance) that needs to be considered in a salary breakup. However, to claim tax exemption on HRA, an employee needs to fulfil certain conditions. The above-mentioned 40% and 50% are for tax exemption on HRA, i.e., 50% of basic salary for those living in metro cities (Mumbai, Delhi, Chennai, Kolkata) or 40% of basic salary for those living in non-metro cities. The percentage of HRA in the salary breakup can be usually negotiated between the employer and the employee as a part of the overall salary package.