please tell me when hra exemption in income tax are being calculated
(1) rent paid in exess of 10% salary
here salary means only(a) basic+grade pay or(2) basic+grade pay+d.a.
Whether a or b will be applicable
DA is taken if DA is part of all pensionary benefits. Even if 1 pensionary benefit does not have DA then it need not be taken.
For CG employees, clarification is required on this behalf, since DA is not a part of monthly pension fixation. However it is granted as DR in a later stage. So it can be argued both ways. Govt of india decision is required in this case. But it is not yet clarified by govt / IT dept.
Also for NPS cases, all pensionary benefits has DA. It can also be argued as there is no DA in the final Pension.
So ambiguity exists in CG employees cases. IT dept has intentionally not clarified it to give benefit to cg employees, since they also come under that category.
presently we are taking only band pay + grade pay for HRA exemption calculation.