Income from salary

Calculation of Income from Salary-

Basic Pay                                                                    240000

DA(20%*240000)                                                            48000

 HRA (see note)                                                              34320

Advance salary(Basic+DA)                                               48000

(20000*2 + 20000*2*20%)

Total Salary                                                                     370320

Note-

HRA least of the following is exempt-

HRA received         =  42000

50%*(240000+48000*40%) =  129600

Rent paid-10%(240000+48000*40%) = 7680

So, Exempt is 7680

taxable amount is HRA received less exempt i.e 42000-7680=34320

Dear Mr. Manish,

                              1step-  48000*40%=19200

                               2 Step- Add the Both (240000+19200)=259200

                             3 Step = 50% of 259200 = 129600

dear Manish u and me r getting the same answer then what's the prblm...i am nt able to get u.....can u tell me ur query????????????????????????????????????////////

Dear DA included in Salary is only that part of DA which is specified for Retirement benefits and in the quesn above 40% DA has been assigned for retirement banefits....Hope u got your answer..

For The calculation of HRA we takes basic salary and DA only on Accrual basis.advance DA and basic Will not Include in this.i think this is your point.