<ol>
<li>Determine the HRA Amount: The HRA amount is usually calculated as a percentage of the basic salary. It can vary based on the employer's policy, but for this example, let's assume it's 50% of the basic salary.
</li>
<li>Get Basic Salary: Assume the basic salary is in cell A1.
</li>
<li>Create an Excel Formula: In a new cell, you can use a formula to calculate the HRA.
</li>
<li>Consider Exemptions: The exempted HRA amount is the minimum of the following:
<ul>
<li>Actual HRA received
</li>
<li>50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities)
</li>
<li>Actual rent paid minus 10% of basic salary
</li>
</ul>
</li>
<li>Taxable HRA: Subtract the exempted HRA from the actual HRA to get the taxable HRA.
</li>
</ol>
Click On <a target="_blank" href="https://www.youtube.com/watch?v=azPRdDruRWw">The Knowledge Academy</a>

1. **Determine the HRA Amount:** The HRA amount is usually calculated as a percentage of the basic salary. It can vary based on the employer's policy, but for this example, let's assume it's 50% of the basic salary.
    
2. **Get Basic Salary:** Assume the basic salary is in cell A1.
    
3. **Create an Excel Formula:** In a new cell, you can use a formula to calculate the HRA.
    
4. **Consider Exemptions:** The exempted HRA amount is the minimum of the following:
    
    * Actual HRA received
        
    * 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities)
        
    * Actual rent paid minus 10% of basic salary
        
5. **Taxable HRA:** Subtract the exempted HRA from the actual HRA to get the taxable HRA.
    

**Click On** [**The Knowledge Academy**](https://www.youtube.com/watch?v=azPRdDruRWw)

HRA Calculation In Excel | Calculate HRA in Payroll In Excel | Microsoft Excel