Salary for HRA exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2011 From one of our client, the salary has been apportioned as Basic, DA,HRA, Conveyance, Special allowance etc. Reg HRA exemption, for 40% or 10% salary calculation which salary should be taken whether Basic + DA or inclusive of all allowances.

CA. R. B. SAH

CA. R. B. SAH (Expert)
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01 January 2011 BASIC+DA

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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06 February 2011 Salary for the purpose of Calculation of HRA will be as follows

Basic Salary + DA (if it enters in to retirement benefits) + Commision as a Fixed %age of Turn Over.

This formula has been given in a Supreme Court Judgement

"Gestetner Duplicators (P) Ltd v/s CIT"
ITR 117 , 1979, SC

IN THIS RELEVANT ISSUE POSTED
Salary = B.S + D.A

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Thanks

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),ITF Hons, SAPM Hons