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What is basic mean while calculating hra

Tax queries 210 views 3 replies

A. Basis salary for the year is 600000

B. DA for the year is 50000

C. DA arrear for the year is 5000

D. Earned Leave Surrender 40000

So while calculating HRA. Which part is considered as 10% of A/B/C/D is BASIC. Please provide solution in detail. Thanks in advance for your time.

Replies (3)

A+B, basic salary + DA without any arrears.

DA to be included only if such DA taken or considered for retirement benefits calculation, else only Basic Pay, check your PF deduction how calculated only Basic or Basic+DA accordingly it is considered

Basic plus DA if terms of employment so provide


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