Specific classes of employees working with an organization registered under the Companies Act and living in specific large cities qualify to receive a CCA from their employer. Top management or higher-level employees do not receive CCA, as their pay scale has already been developed while keeping into account their standards of living. There is no fixed eligibility criterion for CCA, but it is usually offered to middle or lower level employees to help them meet their living expenses in metropolitan cities. 900/- Who are eligible for CCA?Ĭity Compensatory Allowance is provided to employees of both public sector enterprises as well as private sector enterprises. There is no upper or lower ceiling for CCA and for all taxation purpose, CCA is fully taxable if the amount exceeds Rs. For instance, an employee working in Mumbai would receive a higher CCA as compared to someone working in Delhi. CCA is computed as per the pay scale and grade of an employee and not as per the basic salary. In some cases, CCA is also offered for employees working in Tier-2 cities as well.Ĭity Compensatory Allowance is offered as per the discretion of the employer. In simple words, City Compensatory Allowance or CCA is an allowance provided by companies, (public sector or private sector), to its employees to compensate for the higher cost of living in metropolitan or Tier-1 cities.
One of the allowances that are offered to an employee working/living in a Tier-1 city like Delhi, Mumbai, Bangalore, Hyderabad etc. This is the reason behind different types of allowances being paid to an employee in addition to the basic salary. It, therefore, becomes essential for an employer to ensure that the employee is remunerated suitably. Maintaining a certain living standard in a metropolitan city is not easy and stresses an individual’s salary to a great extent. One of the biggest reasons behind an employee switching jobs is higher salary. It is imperative for companies to retain its employees in the present-day competitive scenario. ITR U – What is ITR-U Form and How to File ITR-U.Income Tax Raid, Search and Seizure – What, When, How.UAN Login, Portal Registration, Universal Account Number Activation & Status Check.Which ITR Should I File? Types of ITR Forms for FY 2021-22, AY 2022-23 – All ITR Forms.How to file ITR Online – Step by Step Guide to Efile Income Tax Return, FY 2021-22 (AY 2022-23).Budget 2023: Full List of Cheaper and Costlier Items.
Budget 2022 Highlights: PDF Download, Key Takeaways, Important Points.Budget 2023 Expectations For Income Tax: 80C & 80D Limit Increase, Tax Slab Changes For Salaried Employees.Budget 2023 Highlights: PDF Download, Key Takeaways, Important Points.Which Is Better: Old vs New Tax Regime For Salaried Employees?.
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