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Taxable and Non-taxable Pay and Allowances – Principal Controller of Defense Accounts has issued classification of Pay and allowances
Taxable and Non-taxable Element of Pay and allowances issued by Principal Controller of Defence Accounts (Officers) Ministry of Defence
Government of India
The table of Taxable & Non-Taxable Element of Pay as per Income Tax Act. Provisions are applicable equally to a monthly payment of Allowances as well as arrears for the said head of Pay/ Allowances:-
1. Taxable Element of Pay –
Sl. No.
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Taxable Elements of Pay
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1.
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Pay in the Pay Band
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2.
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Grade Pay
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3.
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Military Service Pay
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4.
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Dearness Allowance
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5.
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Non-Practicing Allowance (if any)
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6.
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Hazard/Special Hazard Pay
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7.
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Para Allowance/Para Reserve Allowance/Special Commando Allowance
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8.
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City Compensatory Allowance
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9.
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Deputation (Duty) Allowance (If any)
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10.
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Reimbursement of Furniture
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11.
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Reimbursement of Water
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12.
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Reimbursement of Electricity
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13.
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Technical Allowance
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14.
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Qualification Pay
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15.
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Special Action Group Allowance (on posting to
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National Security Guard)
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16.
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Technical Pay
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17.
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Language Allowance
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18.
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Qualification Grant
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19.
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Language Award
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20.
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Flying Allowance
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21.
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Leave Encashment on LTC
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22.
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Specialist Allowance
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23.
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Test Pilot Allowance
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24.
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Instructor Allowance
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25.
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Flight Test Allowance
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26.
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Security Allowance
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27.
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Strategic Force Allowance
|
. Non-Taxable Elements of Pay –
Sl No.
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Non-Taxable element of Pay
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Authority
|
Limit of Exemption
|
1.
|
Gallantary Award
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A.O. 46/79; U/S 10 (18) (i) of IT Acts w.e.f. 1947
|
Fully Exempt
|
2.
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Entertainment Allowance
|
U/S 16 (ii) of IT Act w.e.f. 01/04/81
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A sums equal to 1/5th of salary (excluding any allowance/benefit) or Rs.5000/- per annum whichever is less.
|
3.
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Leave Travel Concession (LTC)
|
U/S 10 (5) of IT Act w.e.f. 01/04/89
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Actual Expenditure up to the limit of entitlement
|
4.
|
Foreign Allowance
|
U/S 10 (7) of IT Act
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Fully Exempt
|
5.
|
Bhutan Compensatory Allowance (BCA)
|
AO 395/74 and 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.
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Purchase of Crockery/Cutlery/ Glassware
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U/S 10 (7) of IT Act
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Fully Exempt
|
8.
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Outfit allowance on posting to Embassy
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U/S 10 (7) of IT Act
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Fully Exempt
|
9.
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Arrears of Cash Grant – Foreign Allowance (Nepal)
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U/S 10 (7) of IT Act
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Fully Exempt
|
10.
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Myanmar Allowance
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U/S 10 (7) of
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Fully Exempt
|
11.
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Representation Grant for use of crockery set
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U/S 10 (7) of Act
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Fully Exempt
|
12.
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Encashment of Leave on retirement whether on superannuation/voluntary retirement/release/invalided etc.
|
U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78
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Fully Exempt
|
13.
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House Rent Allowance/House Rent Reimbursement (HRA/HRR)
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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
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.5 of the IT Rules
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Rs.100/- per month per child up to a maximum of 2 children.
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15.
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Hostel Subsidy
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.6 of the IT Rules
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Rs.300/- per month per child up to a maximum of 2 children
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16.
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Siachen Allowance
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.1 (II) of the IT Rules
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Rs.7000/ per month w.e.f. 01/08/1997
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17.
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Special Compensatory (Remote Locality) Allowance
|
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.2 of the IT Rules
|
Category I – SCA ‘A’ – Rs.1300/- per month
Category III – SCA ‘B’– Rs.1050/- per month. Category IV – SCA ‘C’– Rs.750/- per month. Category VI – SCA ‘D’ – Rs.200/- per month. |
18.
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Compensatory Field Area Allowance (CFAA)
|
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.7 of the IT Rules
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Rs.2600/- per month w.e.f. 01/05/1999
|
19.
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Compensatory Modified Field Area Allowance (CMFAA)
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.8 of the IT Rules
|
Rs.1000/- per month w.e.f. 01/05/1999
|
20.
|
Any Special Allowance in the nature of Counter Insurgency Allowance (SCCIA)
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.9 of the IT Rules
|
Rs.3900/- per month w.e.f. 01/05/1999
|
21.
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Transport Allowance granted to
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the IT Rules
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For whole of India – Rs.1600/- per month
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22.
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Transport Allowance granted to a blind or orthopedically handicapped employee with disability of lower extremities, to meet expenditure for the purpose of commuting between place of residence and duty
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.11 of the IT Rules
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For Whole of India – Rs.3200/- per month
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23.
|
High Altitude Uncongenial Climate Allowance (HAUCA)
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table Sl.No.13 of the IT Rules
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For areas of
(a) Altitude of 9000 to 15000 feet (HAUCA ‘I) – Rs.1060/- 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.
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Highly Active Field Area Allowance (HAFA)
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U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.14 of the IT Rules
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Rs.4200/- per month
|
25.
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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.
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26.
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Outfit Allowance (Initial/Renewal)
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U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of IT Rules.
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Fully Exempt
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27.
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Compensation for the change of uniform
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U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
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Fully Exempt
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28.
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Kit Maintenance Allowance
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U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of the IT Rules
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Fully Exempt
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29.
|
Uniform Allowance (MNS)
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U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
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Fully Exempt
|
30.
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Special Winter Uniform
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U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
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Fully Exempt
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31.
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Reimbursement of Medical Expenses
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U/S 17 (2) (viii) (v) of IT Act
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Actual expenditure up to Rs.15000/- per annum.
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32.
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Any payment from Provident Fund
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U/S 10 (11) of IT Act
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Fully Exempt
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33.
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Payment of Compensation – Disability Pension
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CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001
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Fully Exempt.
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