Hi,
The HRA and Basic pay are connected for HRA Computation as explained below:
eg. your basic pay is Rs. 6000, HRA is Rs. 3000 and monthly rent paid by you @ Rs.2500/-. The HRA computation is worked out as follows:
HRA Computation
i) HRA received 36,000 ii) Rent paid 2500*12 30,000 ii) Rent paid Less 1/10 of salary 7,200 -------------- 22,800 iii) 2/5 of salary 28,800 Least of (i), (ii), (iii) is exempt 22,800
Regards,
Saraswathi