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How to Calculate House Rent Allowance in salary sheet

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In my salary sheet format, i want calculate House Rent Allowance in 2 conditions. 

  1. if employee live in Capital city then House Rent Allowance will be 40% of salary
  2. if employee live in other city then House Rent Allowance will be 30% of salary

How can i condition that. 


IF is one of the most popular and useful functions in Excel. Generally, you use an IF statement to test a condition and to return one value if the condition is met, and another value if the condition is not met.

to solution that issue, we will use  IF statement. fist of all, create a documents like below

Now create IF function like below

=IF(C3 = "Capital City",40%,30%)

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.

You can find the sample workbook here. Download it and practice by yourself.


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