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