Is It Possible to reduce Basic +Da percentage less than 40%? Exact condition and procedures?

I need clarification regarding Basic +Da. Is It Possible to reduce Basic +Da percentage less than 40%? Is their any rules which give the exact condition and procedures?

What are your current Basic + Da? why you want to reduce Basic + DA? What organization will have benefits after doing this?

Dear Sajitha,
Yes you can reduce the Basic+DA percentage; however it can't be below the minimum wages as applicable in your state. In fact, there is no benefit of reducing the Basic+DA in case you have a sizable taxable income. If your decrease the Basic+DA, your HRA exemption eligibility will reduce and hence it will increase your taxable income.
Regards
Rahul Chhabra