HRA Calculation in Excel Format (Exemption of HRA)

Friends,

Happy New Year 2010

How to Calculate HRA (House Rent Allowance) exemption as per Income Tax is available u/s 10(13a)

Method of Calculation of HRA exemption is as under:-

1) Rent Paid in excess of 10% of Salary

2) Actual House Rent Allowance Received

3) If rented house situated in Delhi, Calcutta , Mumbai, Madras

50% of Salary

if rented house situated in other cities

40% of Salary

Meaning of Salary in case of calculation of HRA Exemption as per Clause(h)

of rule 2 of Part A of the fourth schedule. is as under:-

Salary = Basic Salary + D.A. (excluding all other allowances )

(Least of the above is exempted as HRA u/s 10(13a) )

Click here to Calculate HRA exemption as per Income Tax Act

for removing all complication , online excel based hra exemption calculator has been prepared.