Inclusion of da for calculation of hra exemption,

This query is : Resolved

R.Balasubramanian (Querist)
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05 August 2014 Hi DA is not included for calculation of PF which is one of the retrial benefits. Under this circumstances can DA be included for Calculating HRA exemption

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 August 2014 PF is calculated on BASIC+DA
HRA is calculated on BASIC.

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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06 August 2014 DA is to be included where it forms part of basic salary if the terms of employment provide for it.

please refer Rule 2A of income-tax Rules 1962

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 August 2014 Mistake accepted. Exemption word went unnoticed. HRA is calculated on Basic (As per Custom Salary Structure) but while calculating HRA exemption Salary includes BASIC+DA.