Sunday, February 21, 2010

HRA Calculation in Excel Format (Exemption of HRA)


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.

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