Tuesday, July 26, 2016
Taxable and Non-Taxable Elements of Pay and Allowances
Taxable and Non-Taxable Elements of Pay and Allowances
List of Taxable Elements of Pay
Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.
Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).
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.
Authority: www.pcdaopune.gov.in
List of Taxable Elements of Pay
Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.
Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).
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.
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Deputation (Duty) Allowance (If any)
|
10.
|
Reimbursement of Furniture
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11.
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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
|
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 Rules
|
Rs.100/- per month per child upto a maximum of 2 children.
|
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
the IT Rules |
Rs.7000/ per month w.e.f. 01/08/1997
|
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 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.
|
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 Rs.2600/- per month w.e.f.01/05/1999
|
19.
|
Compensatory Modified Field
Area Allowance (CMFAA) |
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) |
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.
|
Transport Allowance granted to
meet expenditure for the purpose of commuting between place of residence and duty |
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the IT Rules
|
For whole of India – Rs.1600/- per month
|
22.
|
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 |
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 IT Rules
|
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 Rules
|
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.
|
Highly Active Field Area
Allowance (HAFA) |
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl.No.14 of the IT Rules
|
Rs.4200/- per month
|
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 Rule 2BB (1) (f) of IT Rules.
|
Fully Exempt
|
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 Rule 2BB (1) (f) of the IT Rules
|
Fully Exempt
|
31.
|
Reimbursement of Medical
Expenses |
U/S 17 (2) (viii) (v) of IT Act
|
Actual expenditure upto Rs.15000/- per annum.
|
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.
|
Authority: www.pcdaopune.gov.in
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