7th Pay Commission- The Finance Ministry has changed the rules related to House Rent Allowance (HRA). According to the new rules, government employees will not be eligible for HRA in certain cases. HRA is given to central employees from 8 to 24 percent.
New Delhi. The government has changed the rules of House Rent Allowance (HRA) given to central employees. After the implementation of the new rules, now some employees will not get house rent allowance. If a salaried person lives in a rented house, he gets house rent allowance. Tax exemption is also available on HR. House rent allowance is a significant part of the salary.
The Finance Ministry has informed about the changes in the HRA rules of central government employees. In such a situation, if you are an employee of the Central Government, then you should know that now what conditions you have to follow to get HRA. According to the new rules, now if the employee shares the government accommodation given to another government employee, then they are not entitled to get HRA.
Even if the employee’s parent, son or daughter has been allotted a house by the Central or State Government, Public Sector Undertaking and Semi-Government Organization like Municipal Corporation, Port Trust, Nationalized Bank, LIC etc. and he is living in it Now house rent allowance will not be available.
HRA will not be available even if the husband or wife has got a government accommodation
If the spouse of the government employee has been given a house by any of the units mentioned above, and he is living in that house or living separately on rent, even now the government will not pay him the rent.
What is HRA
HRA or House Rent Allowance is a part of the salary of an employee which is given by the employer for the expenses incurred for the rented accommodation. HRA claim can only be made by a salaried person. The house in which the salaried individual is staying should be on rent. You don’t get the benefit of living in your own house. HRA is available only when the rent is more than 10% of the salary.
The government gives so much HRA
Any government salaried person who is living in a rented house, his house expenses are divided into 3 categories, X, Y and Z. The ‘X’ category is for areas with a population of 50 lakhs and above. Here HRA is given 24% under the 7th Pay Commission. ‘Y’ is for the area with population between 5 lakh to 50 lakh. Here 16 percent HRA is given. Where the population is less than 5 lakhs, it comes in Z category and 8 house rent allowance is given.
