This is equal to 40% of the basic salary if you reside in a non-metro city, and 50% if you reside in a metro city. If you stay in your own house, then this amount is fully taxable. House Rent Allowance: This component can be used by those employees who live in rented house, to lower their tax amount.
Some of the other components such as HRA, PF, NPS depend on this component. This component is paid to you before any deductions and extras such as HRA, Medical allowances etc. Below are the components which are included in earnings: This consists of all the components which are paid by your company, before taxes and other deductions. We’ll see the taxation of each of these components later in tax calculation. Lets understand each of these components.
This section shows the individual components of your salary depending on your CTC (cost-to-company) and other factors. Such as Employee name, ID, Designation, bank details in which the salary got credited, Provident Fund details for the employee, and the month for which the salary slip is published. As we can see, the payslip contains 2 types of information: Employee details