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?
From India, Puttur
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2From India, Puttur
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What are your current Basic + Da? why you want to reduce Basic + DA? What organization will have benefits after doing this?
From India, Pune
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From India, Pune
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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 you decrease the Basic+DA, your HRA exemption eligibility will reduce, and hence it will increase your taxable income.
Regards,
Rahul Chhabra
From India, Delhi
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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 you decrease the Basic+DA, your HRA exemption eligibility will reduce, and hence it will increase your taxable income.
Regards,
Rahul Chhabra
From India, Delhi
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Minimum Wage in Maharashtra DA Special allowance w.e.f January 1, 2020 to June 30, 2020.pdf
Minimum Wages Basic-DA.xls