Income Tax : List of Taxable Elements of Pay – PCDA

Income Tax : List of Taxable Elements of Pay – PCDA Pune
1. Taxable Element of Pay –

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) Alllowance (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

Note: Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.

2.    Non-Taxable Elements of Pay 

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 Acts w.e.f. 1947 Fully Exempt
2. Entertainment Allowance U/S 16 (ii) of IT Act w.e.f. 01/04/81 A sums equal to 1/5th  of salary (excluding any allowance/benefit)

or Rs.5000/- per annum whichever is less

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 395/74 and U/S 10 (7) of IT Act Fully Exempt
6. Servant Wages Allowance alongwith 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 IT 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 2BB (2) – Table

Sl.No.11 of the IT Rules

For Whole of India – Rs.3200/- per month
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 2 BB (1) (f) of

the IT Rules

Fully Exempt
30. Special Winter Uniform Allowance U/S 10 (14) (i) of IT Act and Rule 2 BB (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

Note:
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).

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: https://pcdaopune.gov.in/

Add a Comment

Your email address will not be published. Required fields are marked *