The following dataset contains the salary slip of an employee. **B12:C17 **showcases the income sources and the total salary for **May**.

### Method 1 –Â Actual HRA Calculation on Basic Salary in Excel

**Enter**the amount of basic salary and HRA for**May**inÂ**C5**and**C6**.

- In
**D5**use this formula to**multiply****Â C5**by**12**to calculate the annual basic salary.

`=C5*12`

- Using the same formula, multiply
**C6**by**12**or drag the Fill Handle**Â**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
**Â 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
**Â 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 HRAÂ on
**50%**of the basic salary.

## How to Calculate HRA Exemption in Excel

**Insert**the calculated amounts in**Â 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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