The classification of Indian cities is a ranking system used by the Government of India to allocate House Rent Allowance (HRA) to public servants employed in cities in India. HRA is also used by the Indian Revenue Service (IRS) to provide income tax exemptions. Cities are classified on the basis of their population, as recommended by the Sixth Central Pay Finance.[1] Under the latest HRA city ranking scheme, most popular media and culture considers only tier-X cities to be metropolitan in nature. These eight cities are considered India's "metros".

Current classification

Under the recommendation of the Sixth Central Pay Commission, the CCA classification was abolished in 2008. The earlier HRA classification of cities was changed from A-1 to X; A, B-1, and B-2 to Y; and C and unclassified cities to Z.[2][3][4] X, Y, and Z are more commonly known as Tier-1, Tier-2, and Tier-3 cities, respectively. There are eight X cities and ninety seven Y cities.

On the basis of the 2011 census, two cities—Pune and Ahmedabad—were upgraded from Y to X and twenty one cities from Z to Y on 1 April 2014.[5][6][7]

See also


  1. ^ accessdate=13 January 2013[clarification needed]
  2. ^ "Classification of Indian Cities, Office Memorandum, Government of India," (PDF). doe.gov.in.
  3. ^ "Recommendations of the Sixth Central Pay Commission – Decision of Government relating to grant of Dearness Allowance to Central Government servants" (PDF). Ministry of Finance Department of Expenditure. Retrieved 26 March 2014.
  4. ^ "THE ALL INDIA SERVICES (HOUSE RENT ALLOWANCE) RULES,". Chhattisgarh State Government. Archived from the original on 11 August 2014. Retrieved 26 March 2014.
  5. ^ "Sixth Central Pay Commission Classification of Cities" (PDF). Ministry of Personnel, Public Grievances and Pension. Archived from the original (PDF) on 13 December 2016. Retrieved 26 March 2014.
  6. ^ "Government upgrades 29 cities, towns for HRA, transport allowance | Latest News & Updates at Daily News & Analysis". Retrieved 12 June 2015.
  7. ^ "Revised List of Classification Cities for HRA of central government employees". Govt. Employees India. Retrieved 12 June 2015.
  8. ^ a b c d e "Archived copy" (PDF). Archived from the original (PDF) on 29 December 2009. Retrieved 12 February 2017.CS1 maint: archived copy as title (link)
  9. ^ a b c "Bangalore gets A1 status". Business Standard. 25 September 2007.
  10. ^ Upgradation of Greater Hyderabad Municipal Corporation as A-1 class city for the purpose of House Rent Allowance/Compensatory (City) Allowance" Archived 8 April 2008 at the Wayback Machine. Department of Expenditure. Ministry of Finance. 10 October. 2007
  11. ^ "Archived copy" (PDF). Archived from the original (PDF) on 11 August 2014. Retrieved 30 Jul