24 February 2015
Salary may have different components or it may be a consolidated pay, say Rs.20000/- per month. Or it can be like this. Your basic pay is Rs.12,000/-, Dearness Allowance ( for meeting the inflationary trends or so)is 20% ie., 2400/-( this will be taken into consideration of retirement benefits etc), HRA is 3,000/- and other allowances 4,600/-.While calculating exempted HRA here take Basic pay+DA for Rent paid over 10% of Salary and also for calculating 40% of salary.This is just an example given for your understanding
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