Iam new to this site. can anyone help me as how to calculate House Rent Allowance?
I know the rules, but dont know how to calculate in Excel sheet for all the employees . I need the formula to calculate the HRA Deductions.
I have to submit this record to my company within this week end.
Please help me.
From United States
Please see hereunder HRA Calculation & Formula
Least of Following :
1) HRA Received :
2) 40% of Basic for Non Metro city
3) 50% of Basic for Metor City
4) Rent paid-10% of Basic.
please let us know if u have any query related to Tax.
Lets explain with example.
'A' earning the salary with Basic of 13200/- DA.500 and Commisssion on sale 4%, HRA 5280/- and Spl allow of 4750/- Per month actually Mr A is paying Rent 6000/- month
Least of the followinf is to be exempted
1.Rent paid by the company 5280*12 =63360/-
2.40% on Salary i.e,(13200+500+200)*12= 66720/-
Basic+ DA + 4%
3.Actually rent paid - 10% on salary
Dude only thing u have to consider is Def of salary = basic+DA+Comm on sales no other allowance and perqusit are considered.
In this cas 55320/- is Exempted .:lol:
I think u missed something that's:-(
DA to be taken only if forming part of salary not the one not forming part of salary.
MOre over it get effected with change in fields:
Change in salary
Change from Metro to non-metro city
Change in rent
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