Actual HRA is calculated on three basic concepts: The amount of HRA received from the employer. Actual rent paid less (10%) of the basic salary. If an employee living in the metro (50% of basic salary) and for Non-metro (40% of basic salary). After calculation in all three scenarios, the amount comes least will be exempted u/s 10 (13A). A house rent allowance calculator is a tool that simplifies the calculation of HRA to claim a tax deduction. It does a complex calculation within seconds for salaried individuals. It considers basic salary, dearness allowance, HRA received, rent paid, and the city of residence before calculating the HRA amount. You will need to open the Excel income tax calculator ay 2024-25 & 2023-24. Please choose a financial year, such as AY 2023-24 or AY 2024-25. Select your age in the column “Your Age”. In the “Income Detail” column, enter the income amount for which you wish to calculate the tax. Your annual income should be entered in the appropriate 1) Actual HRA Received, 2) Rent Paid over 10% of salary, 3) 50%/40% of Salary. For this purpose salary means Basic+DA. Calculation for the figures given by you will be following: 1) Actual HRA Received: Rs. 24000 per month, 2) Rent Paid over 10% of Salary: Rs. 84000- (10% of 81360), i.e 84000-8136=75864. The House Rent Allowance (HRA) introduced by the 7th Pay Commission is a crucial component of government employees’ salaries. The 7th Pay Commission House Rent Allowance is designed to assist employees in meeting their housing expenses. The HRA is calculated based on factors such as the employee’s grade pay and the city or town of their . Step 2- Calculate Taxable Income. In order to calculate the part of income which is taxable, you need to subtract allowances (LTA, Conveyance Allowance, HRA), professional tax, medical bills, medical insurance, tax saving investments, if any and other deductions from your gross salary. When you do this you can omit the IF function and use AND, OR and NOT on their own. From the Home tab, click Conditional Formatting > New Rule. Next, select the “Use a formula to determine which cells to format” option, enter your formula and apply the format of your choice. Using the earlier Dates example, here is what the formulas would be. Maximum Limit for deduction under section 80GG. The maximum benefit that you can get under section 80GG, will be least of below amounts: Limit 1: Rs. 60,000 per year (i.e. Rs. 5,000 per month) Limit 2: Total rent paid minus 10% of the adjusted total income. Limit 3: 25% of adjusted total income of employee. Where Adjusted Total Income = Gross 2. Gross Salary Calculation. The formula to calculate gross salary is as follows: Gross Salary = Basic Salary + Allowances. In the gross salary portion, the allowances of the employee are calculated. The allowances in gross salary refer to things such as house rent allowance, transportation allowance, disability allowance, flexible plans, etc. Here’s a step-by-step guide on HRA calculation with the online HRA calculator by HDFC Life: Fill in the basic salary received, dearness allowance, HRA received and total rent paid annually. Also, select if you stay in a metro city or not. Once you have filled in all the details, the online HRA calculator by HDFC Life will give you complete

hra calculation formula in excel