Classification of Indian cities
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 different 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 Commission in 2008 and the Reserve Bank of India, respectively.[1]
Before the Sixth Central Pay Commission, the classification of cities in India was based on two parameters: Compensatory City Allowance (CCA), further divided into categories A-1, A, B-1 and B-2, and HRA, further divided into categories A-1, A, B-1, B-2 and C.
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.
On the basis of the census 2011, two cities — Pune and Ahmedabad — have been upgraded to 'X' class from 'Y' and 21 cities to 'Y' from 'Z' for the purpose of HRA effective from 1 April 2014.[2][5][6]
Historical classification
The cities were classified as follows before the Sixth Central Pay Commission's recommendations were followed in 2008.[7] This classification was initially based on the recommendations of the Fifth Central Pay Commission of India in 1997.[7] Chennai, New Delhi, Kolkata and Mumbai were classified as A-1 cities.[8] City statuses were later revised based on the results of the 2001 Census of India.[7] Hyderabad was accorded the A1 status on 31 August 2007, and Bangalore on 21 September 2007.[8] CCA classification was abolished in 2008.
Population-based classification
The Reserve Bank of India (RBI) classifies centres into six tiers based on population.[10] The tables below shows the classification.
| Population classification | Population (2001 Census) |
|---|---|
| Tier-1 | 100,000 and above |
| Tier-2 | 50,000 to 99,999 |
| Tier-3 | 20,000 to 49,999 |
| Tier-4 | 10,000 to 19,999 |
| Tier-5 | 5,000 to 9,999 |
| Tier-6 | less than 5000 |
| Population classification | Population (2001 Census) |
|---|---|
| Rural Centre | up to 9,999 |
| Semi-urban centre | 10,000 to 99,999 |
| Urban centre | 100,000 to 999,999 |
| Metropolitan centre | 1,000,000 and above |
See also
References
- ↑ "Sixth Central Pay Commission". Ministry of Finance. Retrieved 13 January 2013.
- 1 2 "Sixth Central Pay Commission Classification of Cities" (PDF). Ministry of Personnel, Public Grievances and Pension. Retrieved 26 March 2014.
- ↑ "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.
- ↑ "THE ALL INDIA SERVICES (HOUSE RENT ALLOWANCE) RULES,". Chhattisgarh State Government. Retrieved 26 March 2014.
- ↑ "Government upgrades 29 cities, towns for HRA, transport allowance | Latest News & Updates at Daily News & Analysis". Retrieved 2015-06-12.
- ↑ "Revised List of Classification Cities for HRA of central government employees". Govt. Employees India. Retrieved 2015-06-12.
- 1 2 3 4 5 http://finmin.nic.in/the_ministry/dept_expenditure/miscellaneous/hracca.pdf
- 1 2 3 http://www.business-standard.com/article/economy-policy/bangalore-gets-a1-status-107092501055_1.html
- ↑ Upgradation of Greater Hyderabad Municipal Corporation as A-1 class city for the purpose of House Rent Allowance/Compensatory (City) Allowance". Department of Expenditure. Ministry of Finance. 10 October. 2007
- ↑ http://rbidocs.rbi.org.in/rdocs/content/pdfs/100MCA0711_5.pdf