7th CPC HRA Exemption Online Calculator 2023, Formula Salary Table

The new rates for House Rent Allowance (HRA) have been updated. It is an important component of the compensation package offered to government employees, as it covers a portion of their rental housing expenses. The rates are categorized into three sections based on the city classification, with the percentages varying accordingly. As per the July 1, 2021 update, the HRA rates for X, Y, and Z class cities stands at 27%, 18%, and 9%, respectively.

House Rent Allowance Is Exempt From Tax

House Rent Allowance (HRA) is exempt from tax if you live in a rented house. However, if you are a salaried employee who owns a house and receives HRA from your employer, you cannot claim tax deductions under the HRA exemption section. Fortunately, Section 80D of the Income Tax Act provides a beneficial loophole. If you are living with your parents and paying their rent, you can claim the HRA exemption. This is especially advantageous if your parents fall under the tax-exempt or lower tax bracket. Don’t miss out on this tax-saving opportunity!

House Rent Allowance Under Section 10(13a) Limit

HRA Hike for Central Government Employees in 2023: Get Ready for the Changes

Central Government (CG) employees can finally expect some good news in January 2023 as the House Rent Allowance (HRA) rates are set to increase. This is all thanks to the much-anticipated 42% increase in Dearness Allowance (DA), which will be used to calculate the revised HRA rates as per the recommendations of the 7th Pay Commission. The revised rates will be 27%, 18%, and 9% for cities classified as X, Y, and Z respectively. So, get ready for the HRA hike and stay tuned for further updates!

How To Calculate HRA On Basic Salary

Are you looking for information on how to calculate HRA in salary? Look no further! Whether you work in the public or private sector, your employer may allocate a portion of your basic salary towards housing rent expenses. The amount of this allocation is determined based on the classification of the city or town you are based in.

To calculate your Housing Rent Allowance (HRA), first determine your basic salary. For example, if your basic salary is Rs. 49000, you can calculate your HRA as follows: 27% of your basic salary is equivalent to Rs. 13230, 18% is equivalent to Rs. 8820, and 9% is equivalent to Rs. 4410. Use this handy formula to calculate your HRA and plan your budget accordingly.

How To Get Maximum HRA Exemption

Get the latest update on HRA Hike for Central Government Employees with our optimized SEO content. As per the 7th CPC, House Rent Allowance (HRA) for Central Government employees is based on their basic salary (pay) and city of residence. The minimum amount of HRA is Rs. 1,800, which is equal to 10% of the minimum basic pay of Rs. 18,000.

To ensure that you are up-to-date with the latest HRA rates and entitlements for Central Government employees, it’s important to note that the Government of India issued an important order on 7th July 2017, as per the decision on the 7th pay commission report. The new revised rates (percentage) of HRA as per city classification with effect from 1st July 2017 are as follows:

– X Class Cities (Above 50 Lakh Population): 27% of Basic Salary
– Y Class Cities (5 to 50 Lakh Population): 18% of Basic Salary
– Z Class Cities (Below 5 Lakh Population): 9% of Basic Salary

Stay informed with the latest updates on HRA Hike for Central Government Employees to ensure you receive the appropriate entitlements for your city of residence.

HRA Calculation 7th Pay Commission

The HRA Hike for Central Government Employees has brought about significant changes in the minimum rates of HRA. As per the latest updates, the revised rates of HRA will not be less than Rs. 5400 for X Class cities, Rs. 3600 for Y-class cities, and Rs. 1800 for Z-class cities. If you’re a Central Government Employee with pay level 1, 2, or 3, the below table denotes the minimum amount of HRA you are entitled to receive. Stay tuned for more updates on HRA Hike for Central Government Employees.

HRA Calculation Monthly Or Yearly

This table displays the HRA calculation based on the minimum pay for all levels in the Pay Matrix. The table includes the minimum basic salary (pay) for each level as well as the corresponding amounts for HRA at 24%, 16%, and 8%.

HRA Calculation Sheet Pdf Online

In the event that Dearness Allowance (DA) exceeds 25 percent, HRA rates will be adjusted to 27%, 18% and 9% for X, Y, and Z class cities respectively. Subsequently, these rates are further adjusted to 30%, 20%, and 10% when DA exceeds 50%. This rule also applies to Central Government Employees who receive Double HRA. The House Rent Allowance is determined by the location of the office or place of duty, rather than the employee’s residence. Based on the level of the employee, the HRA amount corresponds accordingly to compensate for rental costs of residential accommodation leased or rented by the employee.

HRA Calculator For Central Government Employees

If you’re curious about the Classification of Cities for HRA after the 7th Pay Commission, it’s essential to understand that Indian cities are categorized into three groups. These categories, namely X Cities, Y Cities, and Z Cities, are determined by population data. The table below displays each state’s ‘X’ and ‘Y’ Class cities and towns, while all other cities fall into the ‘Z’ Class. Knowing this classification is vital for anyone seeking House Rent Allowance. Click to Calculate

HRA Exemption Section Limit Without Proof

State-Wise List of X Y Z Class Cities in India: Andhra Pradesh & Telangana and Assam

Looking for a comprehensive list of X, Y, Z class cities in India? Below is the state-wise list of classified cities for HRA in Andhra Pradesh, Telangana, and Assam.

Andhra Pradesh & Telangana:
– Classified ‘X’ City (24% HRA): Hyderabad (UA)
– Classified ‘Y’ Cities (16% HRA): Vijayawada (UA), Warangal (UA), Greater Visakahapatnam (M.Corpn.), Guntur (UA), Nellore (UA)

Assam:
– Classified ‘Y’ City (16% HRA): Guwahati (UA)

Bihar:
– Classified ‘Y’ City (16% HRA): Patna (UA)

Chandigarh:
– Classified ‘Y’ Cities (16% HRA): Chandigarh (UA), S.A.S. Nagar, Mohali*

Chhattisgarh:
– Classified ‘Y’ Cities (16% HRA): Durg-Bhilai Nagar (UA), Raipur (UA)

Delhi:
– Classified ‘X’ Cities (24% HRA): Delhi (UA)

Gujarat:
– Classified ‘X’ Cities (24% HRA): Ahmadabad (UA)
– Classified ‘Y’ Cities (16% HRA): Rajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)

Haryana
Here is a list of cities classified as ‘Y’ cities with 16% HRA in Haryana:
– Faridabad* (M.Corpn.)
– Gurgaon* (UA)

Jammu & Kashmir
Here is a list of cities classified as ‘Y’ cities with 16% HRA in Jammu & Kashmir:
– Srinagar (UA)
– Jammu(UA)

Jharkhand
Here is a list of cities classified as ‘Y’ cities with 16% HRA in Jharkhand:
– Jamshedpur (UA)
– Dhanbad (UA)
– Ranchi (UA)
– Bokaro Steel City (UA)

Karnataka
Here is a list of cities classified under ‘X’ and ‘Y’ categories with 24% and 16% HRA respectively in Karnataka:
– Bangalore / Bengaluru (UA) – X
– Belgaum (UA) – Y
– Hubli-Dharwad (M.Corpn.) – Y
– Mangalore (UA) – Y
– Mysore (UA) – Y
– Gulbarga (UA) – Y

Kerala
Here is a list of cities classified as ‘Y’ cities with 16% HRA in Kerala:
– Kozhikode (UA)
– Kochi (UA)
– Thiruvananthapuram (UA)
– Thrissur (UA)
– Malappuram (UA)
– Kannur (UA)
– Kollam (UA)

Madhya Pradesh
Here is a list of cities classified as ‘Y’ cities with 16% HRA in Madhya Pradesh:
– Gwalior (UA)
– Indore (UA)
– Bhopal (UA)
– Jabalpur (UA)
– Ujjain (M.Corpn.)

Maharashtra:
Classified ‘X’ Cities (24% HRA)
– Greater Mumbai (UA)
– Pune (UA)

Classified ‘Y’ Cities (16% HRA)
– Amravati (M.Corpn.)
– Nagpur (UA)
– Aurangabad (UA)
– Nashik (UA)
– Bhiwandi (UA)
– Solapur (M.Corpn.)
– Kolhapur (UA)
– Vasai–Virar City (M.Corpn.)
– Malegaon (UA)
– Nanded-Vaghela (M.Corpn.)
– Sangli (UA)

Odisha:
Classified ‘Y’ Cities (16% HRA)
– Cuttack (UA)
– Bhubaneswar (UA)
– Raurkela (UA)

Puducherry (Pondicherry):
Classified ‘Y’ Cities (16% HRA)
– Puducherry / Pondicherry (UA)

Punjab:
Classified ‘Y’ Cities (16% HRA)
– Amritsar (UA)
– Jalandhar (UA)
– Ludhiana (M.Coprn.)

Rajasthan:
Classified ‘Y’ Cities (16% HRA)
– Bikaner (M.Corpn.)
– Jaipur (M.Corpn.)
– Jodhpur (UA)
– Kota (M.Corpn.)
– Ajmer (UA)

Tamil Nadu:
Classified ‘X’ Cities (24% HRA):
– Chennai (UA)

Classified ‘Y’ Cities (16% HRA):
– Salem (UA)
– Tiruppur (UA)
– Coimbatore (UA)
– Tiruchirappalli (UA)
– Madurai (UA)
– Erode (UA)

Uttar Pradesh:
Classified ‘Y’ Cities (16% HRA):
– Moradabad (M.Corpn.)
– Meerut (UA)
– Ghaziabad* (UA)
– Aligarh (UA)
– Agra (UA)
– Bareilly (UA)
– Lucknow (UA)
– Kanpur (UA)
– Allahabad (UA)
– Gorakhpur (UA)
– Varanasi (UA)
– Saharanpur (M.Corpn.)
– Nodia* (CT)
– Firozabad (NPP)
– Jhansi (UA)

Uttarakhand:
Classified ‘Y’ Cities (16% HRA):
– Dehradun (UA)

If you’re looking for the state-wise list of X Y Z class cities in India, we’ve got you covered. Here is the list of classified cities for HRA in West Bengal:

Classified ‘X’ Cities (24% HRA):
– Kolkata (UA)

Classified ‘Y’ Cities (16% HRA):
– Asansol (UA)
– Siliguri (UA)
– Durgapur (UA)

Make sure to bookmark this page for your reference. Knowing the classification of cities can help you understand the HRA rates and make informed decisions.

Please note that S.A.S. Nagar, Mohali has special sanction at par with Chandigarh, while Faridabad, Gurgaon, Ghaziabad, and Noida are based on dependency only for HRA. Saharanpur was classified as Y class with effect from June 2011.