List of Taxable Elements of Pay and Allowance
Taxable Elements 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|
|3||Military Service Pay|
|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|
|15||Special Action Group Allowance (on posting to National Security Gaurd)|
|21||Leave Encashment on LTC|
|23||Test Pilot Allowance|
|25||Flight Test 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.|
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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