7th Pay Commission: Amidst the sadness some good news on Income Tax

New Delhi, Apr 10: There is some encouraging and good news on the 7th Pay Commission.

At least 9 lakh personnel could benefit if this assurance given to the Home Ministry is implemented. The Finance Ministry has assured that it would consider the demands to exempt ration money allowance and risk and hardship allowance granted to the jawans of the paramilitary forces.

If this decision is implemented then nine lakh personnel of the CRPF, BSF, CISF, IRBP and SSB will benefit. The Finance Ministry is learnt to have said that the long standing demand would be examined during the budgetary exercise.

The home ministry it may be recalled had raised the issue of tax exemption on ration money allowance given to the paramilitary forces on the basis of the party with other uniformed forces.

The personnel of paramilitary forces up to non-gazetted ranks such as constable, head constable, ASI, SI and inspector are entitled to a ration money allowance of Rs 3,000 per month.

It may be recalled that the 7th Pay Commission had recommended looking into the unique service conditions of the paramilitary personnel. This was done because RMA is granted in lieu of free ration and hence must be exempted from tax.