Can we calculate HRA on basic pay or PIPB only (Pay in Pay Band (PIPB) and not Grade Pay (AGP))? If yes, then which section of the Income Tax Act supports it? Generally, HRA is calculated on PIPB plus AGP.
You can calculate HRA as 50% in a metro city or 40% of the basic salary in a non-metro city. The medical allowance is Rs. 1250.00 per month, and the conveyance allowance is Rs. 1600.00 per month.
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