11 March 2012
I am working in Life Insurance Corporation of India.According to our "Terms of employment" only Basic Pay is considered for Provident Fund Contribuition.i.e. every month 10% of my basic salary is deposited in provident fund account.
My query is how HRA exemption is to be calculated if I am staing in a rented house & in a non-metro city ?
Whether to take 1/10th of only BASIC pay or 1/10th of BASIC pay + Dearness Allowance paid on that basic.Kindly guide.
11 March 2012
If the Dearnesss allowance not taken for computation for retirement benefit than you cannot consider for HRA calculation also. so you can consider only 10% basic salary only
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