List of Taxable and Non-Taxable elements of Pay
Taxable Pay:
Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.
Sl. No. | Taxable Elements of Pay |
1 | Pay in the Pay Band |
2 | Grade Pay |
3 | Military Service Pay |
4 | Dearness Allowance |
5 | Non-Practicing Allowance (if any) |
6 | Hazard/Special Hazard Pay |
7 | Para Allowance/Para Reserve Allowance/Special Commando Allowance |
8 | City Compensatory Allowance |
9 | Deputation (Duty) Allowance (If any) |
10 | Reimbursement of Furniture |
11 | Reimbursement of Water |
12 | Reimbursement of Electricity |
13 | Technical Allowance |
14 | Qualification Pay |
15 | Special Action Group Allowance (on posting to National Security Guard) |
16 | Technical Pay |
17 | Language Allowance |
18 | Qualification Grant |
19 | Language Award |
20 | Flying Allowance |
21 | Leave Encashment on LTC |
22 | Specialist Allowance |
23 | Test Pilot Allowance |
24 | Instructor Allowance |
25 | Flight Test Allowance |
26 | Security Allowance |
27 | Strategic Force Allowance |
Non-Taxable Elements of Pay:
1. Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.
2. *Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).
Sl No. | Non-Taxable element of Pay | Authority | Limit of Exemption |
1 | Gallantary Award | A.O. 46/79;U/S 10 (18)(i) of IT Actsw.e.f. 1947 | Fully Exempt |
2 | Entertainment Allowance | U/S 16 (ii) of IT Act w.e.f.01/04/81 | A sums equal to1/5th of salary(excluding any allowance/benefit) orRs.5000/- per annum whichever isless. |
3 | Leave Travel Concession (LTC) | U/S 10 (5) of IT Act w.e.f.01/04/89 | Actual Expenditure upto the limit of entitlement |
4 | Foreign Allowance | U/S 10 (7) of IT Act | Fully Exempt |
5 | Bhutan Compensatory Allowance (BCA) | AO 395/74and U/S 10(7) of IT Act | Fully Exempt |
6 | Servant Wages Allowance along with BCA | AO 395/74 and U/S 10 (7) of IT Act | Fully Exempt |
7 | Purchase of Crockery/Cutlery/Glassware | U/S 10 (7) of IT Act | Fully Exempt |
8 | Outfit allowance on posting to Embassy | U/S 10 (7) of IT Act | Fully Exempt |
9 | Arrears of Cash Grant – Foreign Allowance (Nepal) | U/S 10 (7) of IT Act | Fully Exempt |
10 | Myanmar Allowance | U/S 10 (7) of IT Act | Fully Exempt |
11 | Representation Grant for use of crockery set | U/S 10 (7) of Act | Fully Exempt |
12 | Encashment of Leave on retirement whether on superannuation/voluntary retirement/release/invalidment etc. | U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78 | Fully Exempt |
13 | House Rent Allowance/House Rent Reimbursement (HRA/HRR) | U/S 10 (13A) of IT Act w.e.f. 06/10/1964; Limit of exemption as per Rule 2A of IT Rules | *Quantum of exemption is least of the following – a) For |
Bombay/Kolkata/Delhi Chennai i) Allowance actually received. ii) Rent paid in | |||
excess of 10% of salary iii) 50% of salary b) For other cities i) Allowance | |||
actually received. ii) Rent paid in excess of 10% of salary. iii) 40% of | |||
salary | |||
14 | Children Education Allowance | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.5 of the IT | Rs.100/- per month per child upto a maximum of 2 children. |
Rules | |||
15 | Hostel Subsidy | U/S 10 (14) (ii) of IT Act and Rule | 2BB (2) – Table Sl No.6 of the IT Rules, Rs.300/- per month per child |
upto a maximum of 2 children | |||
16 | Siachen Allowance | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl No.1 (II) of | Rs.7000/ per month w.e.f. 01/08/1997 |
the IT Rules | |||
17 | Special Compensatory (Remote Locality) Allowance | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.2 of the IT | Category I – SCA ‘A’ – Rs.1300/- per month Category III – SCA ‘B’ – |
Rules | Rs.1050/- per month. Category IV – SCA ‘C’ – Rs.750/- per month. Category VI | ||
– SCA ‘D’ – Rs.200/- per month. | |||
18 | Compensatory Field Area Allowance | (CFAA) U/S 10 (14) (ii) of IT | 2BB (2) – Table Sl No.7 of the IT Rules Rs.2600/- per month w.e.f. |
Act and Rule | 1/5/1999 | ||
19 | Compensatory Modified Field | U/S 10 (14) (ii) of IT Act and | Rs.1000/- per month w.e.f. 01/05/1999 |
Area Allowance (CMFAA) | Rule 2BB (2) – Table Sl No.8 of the IT Rules | ||
20 | Any Special Allowance in the nature of Counter Insurgency Allowance | U/S 10 (14) (ii) of IT Act and | Rs.3900/- per month w.e.f. 01/05/1999 |
(SCCIA) | Rule 2BB (2) – Table Sl.No.9 of the IT Rules | ||
21 | Transport Allowance granted to | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the | For whole of India – Rs.1600/- |
meet expenditure for the purpose of commuting between place of residence and | IT Rules | per month | |
duty | |||
22 | Transport Allowance granted to | U/S 10 (14) (ii) of IT Act and Rule | For Whole of India – Rs.3200/- per month 2BB (2) – Table Sl.No.11 of the |
a blind or orthopedically handicapped employee with disability of lower | IT Rules | ||
extremities to meet expenditure for | |||
the purpose of commuting between place of residence and duty | |||
23 | High Altitude Uncongenial Climate Allowance (HAUCA) | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table Sl.No.13 of the IT | For areas of (a)Altitude of 9000 to 15000 feet (HAUCA ‘I) – Rs.1060/- |
Rules | per month w.e.f. 01/05/1999. (b)Altitude above 15000 feet (HAUCA ‘II’ & | ||
‘III) – Rs.1600/- per month w.e.f. 01/05/1999. | |||
24 | Highly Active Field Area | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl.No.14 of the IT | Rs.4200/- per month |
Allowance (HAFA) | Rules | ||
25 | Island (duty) Allowance granted to the members of Armed Forces | U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.15 of the IT Rules | For Andaman & Nicobar and Lakshadweep group of islands – |
Rs.3250/- per month inserted w.e.f. 29/02/2000. | |||
26 | Outfit Allowance (Initial/Renewal) | U/S 10 (14) (i) of IT Act and | Fully Exempt |
Rule 2BB (1) (f) of IT Rules. | |||
27 | Compensation for the change of uniform | U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules | Fully Exempt |
28 | . Kit Maintenance Allowance | U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of the IT Rules | Fully Exempt |
29 | Uniform Allowance (MNS) | U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules | Fully Exempt |
30 | Special Winter Uniform Allowance | U/S 10 (14) (i) of IT Act and | Fully Exempt |
Rule 2BB (1) (f) of the IT Rules | |||
31 | Reimbursement of Medical | U/S 17 (2) (viii) (v) of IT Act | Actual expenditure upto Rs.15000/- per annum. |
Expenses | |||
32 | Any payment from Provident Fund | U/S 10 (11) of IT Act | Fully Exempt |
33 | Payment of Compensation – Disability Pension | CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001 | Fully Exempt. |
Disclaimer : The above provisions are with the understanding and interpretation of IT Act 1961/IT Rules as amended and instructions issued by CBDT from time to time. Rules, provisions, further amendments and clarifications are issued by IT department/CBDT only and this office does not have any role in framing the same except IT deductions at source with reference to them.
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