The following dataset contains the salary slip of an employee. B12:C17 showcases the income sources and the total salary for May.
Method 1 – Actual HRA Calculation on Basic Salary in Excel
- Enter the amount of basic salary and HRA for May in C5 and C6.
- In D5 use this formula to multiply C5 by 12 to calculate the annual basic salary.
=C5*12
- Using the same formula, multiply C6 by 12 or drag the Fill Handle to D6 to copy the formula.
- Enter this formula in D7 to calculate the actual HRA on basic salary in 1 annual term.
=D6
- The table showcases the actual HRA on basic salary.
Method 2 – Calculate HRA with Annual House Rent & Basic Salary
The formula below is used.
HRA = Rent - 10% Basic Salary- Enter the amount of basic salary and house rent in C5 and C6.
- In D5 multiply C5 by 12 using a simple multiplication formula to calculate the annual amount of basic salary & house rent.
=C5*12
- Follow the same method to calculate the annual house rent in D6.
=C6*12
- Enter this formula in D7 to calculate the annual HRA with house rent and basic salary.
=D6-D5*10%
- The table showcases HRA with annual house rent and basic salary.
Method 3 – Get HRA on 50% of Basic Salary in Excel
- Apply the same multiplication process in D5 to calculate the annual basic salary.
- Enter the formula below in D6 to see HRA based on 50% of your basic salary:
=D5*50%
- The table below showcases HRA on 50% of the basic salary.
How to Calculate HRA Exemption in Excel
- Insert the calculated amounts in C5, C6 and C7.
- Enter this formula to find the minimum amount of HRA.
=MIN(C5:C7)
- This final amount is the HRA on basic salary. It will be deducted from the total amount of tax at the time of tax payment.
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