Is HRA calculated differently for government employees?

The House Rent Allowance (HRA) for government employees in India is based on the following factors:

City class:

The HRA rate depends on the city class, which is X, Y, or Z:

Dearness Allowance (DA):

The HRA rate is revised when the DA crosses certain levels:

- When the DA crosses 25%, the HRA rate is revised to 27% for X cities, 18% for Y cities, and 9% for Z cities.

- When the DA crosses 50%, the HRA rate is revised to 30% for X cities, 20% for Y cities, and 10% for Z cities.

HRA is calculated by taking the lowest value of the following:

- The actual HRA received

- 50% of basic salary + DA for metro cities, or 40% for non-metro cities

- The actual rent paid after subtracting 10% of basic salary + DA

Salaried individuals can claim exemptions for HRA under Section 10 (13A), rule number 2A of the Income Tax Act.