How to calculate DA
HRA calculation:
HRA calculation is a part of DA or dearness allowance is calculated as a specific percentage of the basic salary which is then added to the basic salary along with other components like HRA (House Rent Allowance) to make up the total salary of an employee. There is no single procedure to arrive at Salary Breakup and there are different methods followed by different organizations. HRA or House Rent Allowance is the salary component given by a company to an employee in order to meet expenses related to the renting of accommodation which the employee takes for residential purposes. HRA is applicable to both employees from the private sector as well as the public sector whereas DA is majorly applicable to employees working in the public sector.
HRA calculation online:
HRA calculation online is an employee can request House Rent Allowance (HRA) to meet your rented accommodation-related expenses. Employee’s who live in a rented house can request this exemption for taxes.HRA can be fully or partially exempt from tax. If an employee does not live in a rented accommodation but still get house rent allowance, the allowance will be fully taxable.
HRA calculation in INDIA
Dearness Allowance is awarded to the employee against the price rise to mitigate the impact of inflation .Rules are that Employee cannot claim for the full rental amount he’s paying. The exemption is based on the least of the actual amount allotted by the employer as the HRA and Actual rent paid less 10% of the basic salary.
DA calculation in salary
Dearness Allowance as per 7th CPC Basic Pay= (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)
7th pay commission, new formula to calculate dearness allowance.
= ((12 Months Average of AICPIN)-261.4)*100/261.4)
HRA formula
The HRA should not be more than 50% of salary following with an example
If an employee
Basic Salary – Rs. (5000*12) – Rs. 60,000/-
Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
Actual Rent Paid – Rs. (2000*12) – Rs. 24000/-
Minimum amount to exempt from taxes
Actual HRA received (2000*12) – Rs. 24000/-
Rent amounted in extra of 10% of salary (24000-7200) – Rs. 16800
40% of Salary – Rs. 28800/-
Rs. 16800 should be excluded and the balance Rs. 7200 to be combined in the wage
Posted on: 10th Dec 2019
What is HBSAT? Hyderabad Business School Aptitude Test, commonly known as HBSAT is an admission entrance test for admission into two-year full-time MBA programs offered at Hyderabad Business School. HBSAT is conducted every year by Hyderabad Business School of GITAM (Gandhi Inst...
Posted on: 28th Nov 2019
Retail sector saw 25% growth in hiring trends followed by IT/Telecom sectors: October 2019 hiring trends report Wisdom jobs hiring trends report October 2019 found that there is a growth in talent demand for Consumer Durables/FMCG, Retail and Petrochemicals/Oil and Gas/ Power re...
Posted on: 19th Nov 2019
Bocconi Entrance Test (BET) – 2020 What is BET 2020? Bocconi Entrance Test, commonly known as BET is a university level entrance for admission into International Master in Business (IMB) program offered by The University Bocconi, Mumbai. Bocconi Entrance Test is organiz...
Posted on: 18th Nov 2019
UPAT- UPES Planning Aptitude Test 2020 What is UPAT 2020? UPES Planning Aptitude Test 2020 an online entrance exam, commonly known as UPAT 2020 is considered as the gateway for admission to B-Plan (Bachelor of Planning) program offered by the University of Petroleum and Energ...
Posted on: 14th Nov 2019
B-MAT/ BVP B-MAT 2020 What is B-MAT? BVP B-MAT or simply B-MAT is a Management Aptitude Test for admission to various PG management programs such as MBA (various streams)/PGDM conducted by BharatiVidyapeeth Deemed University, Pune. B-MAT 2020 will be organized by BharatiVidya...
Posted on: 13th Nov 2019
AIMS Test for Management Association – ATMA 2020 What is ATMA? AIMS Test for Management Association commonly known as ATMA is a national-level entrance exam and gateway for admission to many post graduate management and technical related professional courses such as ...
Posted on: 11th Nov 2019
Alliance Management Aptitude Test – AMAT 2020 What is AMAT 2020? Alliance Management Aptitude Test, commonly known as AMAT is a gateway for admission to MBA and other management program like PGDM offered at Alliance School of Business, Bangalore conducted by Alliance Un...
Posted on: 07th Nov 2019
Talent demand saw growth across the sectors: Hiring trends 2019 Telecom sector ● Job share was the highest at junior level. However, demand was high for senior level candidates as well ● Demand was high for IT/Telecom and Sales/Business Development professionals at junior...
Posted on: 06th Nov 2019
How to crack SNAP 2019? Symbiosis National Aptitude commonly known as SNAP is a university level management entrance examination for admission to the MBA and MSc (Computer Application)/MSc (System Security) programs offered at various Symbiosis Institutes located in various pa...
Posted on: 01st Nov 2019
How to write a sales/marketing CV? Sales and marketing are two terms that professionals often hear commonly. Though there is a difference between sales and marketing functions, these two functionswork closely together. Here we are explainingthe ways of writing a sales and market...
Posted on: 31st Oct 2019
How to become an air hostess? To become an air hostess of any reputed airlines, you need to have patience and serve all kinds of people. Here we are discussing about the career guide of an air hostess. Who is an air hostess? An air hostess is part of a cabin crew respons...
Posted on: 28th Oct 2019
Employment Termination What is Termination from Employment? What does it mean when an employee is terminated or dismissed from the employment/job position? Well, when an employee ends his/her job is termed as “termination”. Termination can be occurred by employer ...
0 Comments on How to calculate DA