Automated Payroll Calculation - Xls Download

hi,anybody can help me to calculate the HRA. HRA is calculating from BBasic or from Basic pay(means Basic+DA)

Sir, my doubt is that 40% is calculated from the Basic only or from (Basic+D.A). pls reply

Hi Santhosh,
As per the Income Tax, we would like to highlight the meaning for Salary while calculating HRA.
"Salary" for this purpose will include dearness allowance if it counts for retirement benefit, and commission; but excludes all other allowances and perquisites.
Please refer the attached file which talks about the more details about HRA. Hope, this would be more useful to you...

salary break up is done for availing various sort of benefits from both employee -employer perspective. there is no hard and fast rule which ask employer to define salary break up. generally HRA is taken 40% of basic in non metro cities and 50% of basic in metro cities. in case you want to calculate HRA no basic+DA, i feel you can do that. but once you have done it, make sure you continue to follow the same further. Seniors may enlighten you more on this.

Hi Santhosh,
As per income Tax act, for calculation House rent allowance least of the following is available as deduction :
Actual HRA received
50% / 40%(metro / non-metro) of basic ‘salary + DA’
Actual Rent paid (minus) 10% of ‘Basic salary + DA’.
Which amount is less, it will be exempted for HRA Exemption.
Metro Cities: Cities Like, Delhi, Mumbai, Chennai and Kolkata constitutes Metro.
Srini