How To Calculate Hra Exemptions To Calculate Tds? Xls Download

ramdas.iyer Started The Discussion:
Dear Sir, How to calculate HRA Exemptions to calculate TDS. Regds Ramdas.iyer
Dear Ramdass HRA Exemption = Actual house rent paid-10% of excess basic salary. Regards Charvaka Reddy
Dear Ramdass

There are three ways to calculate the HRA :-
1. Actual HRA received
2. If you are living in metropolitan city, it should be 50% of basic, otherwise 40% of basic component of your salary
3. If you are paying rent & you have rent receipt, you should calculate "Rent paid-10% of basic"

Now, HRA Exemption = Minimum return from the above three way calculation.

I hope it will fulfill your query.

Sanjay Gupta
Dear Ramdas,

You can ask for a free Demo at Sensys Technologies, 022-66278601/02, they have a good payroll software which will take care every thing related to Payroll like payroll processing, PF, ESIC, MLWF, Income Tax etc. visit their website at

least of 3 is exempted 1. Actual HRA Received 2. Rent Paid- 10% Salary* 3. 40% Or 50%** of Salary *Salary= Basic Salary+DA(Forming part) ** 50% for Metro City (Delhi, Mumbai, Chennai, Kolkata)
Dear All,
Actual HRA Received
2. Rent Paid- 10% Salary*
3. 40% Or 50%** of Salary

*Salary= Basic Salary+DA(Forming part)
** 50% for Metro City (Delhi, Mumbai, Chennai, Kolkata)
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Above all are mandatory or Depend on Company policy .
HRA:- Least of following: (1) 10 % of Salary; (2) Amt. Actually Received; (3) Amt. if Accommodation situated in (a) Mumbai, Delhi, Kolkata & Chennai = 50%; (b) Other Case = 40%.
Dear Ramdass, HRA Excemption = Actual House rent paid - 10% Excess Basic Salary. metro cities HRA IS 50% OF Basic Salary Non Metro Cities HRA IS 40% OF Basic Salary Regards Charvaka Reddy
Hi Kindly use this attached Excel file for HRA exemption calculation
Attached FilesProvided by community member R G NAGENDRA. Register to join your network of peers.
File Type: xls HRACALCULATION.xls (55.0 KB, 5365 views)
Hi Ramdas,

Example : HRA Recd - Rs. 100/- Rent Paid By You (livinging in Delhi)- Rs. 150/- , Basic Salary-Rs. 250/-

Least of following 3 is exempted

1. Actual HRA Recd. Rs.100/-
2. Rent Paid-10 % of SAL* (Rs. 150-10%X Rs. 250) Rs. 125/-
3. 50% of SAL* (50% X Rs. 250 ) Rs. 1250/-

Above 3 Point No. 1 Rs. 100/- is least

Taxable HRA - Actual Recd. - Exempted (100-100=0)


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