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7th Pay Commission: List of taxable and non-taxable elements of pay

By Vicky
|
    7th Pay Commission: Update on list of taxable and non-taxable elements of pay | Oneindia News

    There were many changes in the salary structure after the 7th Pay Commission recommendations were cleared. The PCDA has released a list of both taxable elements of pay and non-taxable elements of pay.

    Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/ Allowances. Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).

    Taxable elements of pay

    Taxable elements 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
    Non-Taxable elements of pay

    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
    What one must note

    What one must note

    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.

    7th Pay Commission for judges

    7th Pay Commission for judges

    In another development, the Supreme Court sought to know when their salaries would be hiked. A Bench said that the salaries of bureaucrats is much better compared to that of the judges of the High Courts and SC after the 7th Pay Commission recommendations were approved. The proposal to increase judges' salaries was approved in principle by the government in March, but the issue has been pending.

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