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7th Pay Commission: List of taxable and non-taxable elements of pay
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.
Recommended Video
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
| 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
| 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
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
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.
OneIndia News
Comments
Story first published: Wednesday, November 1, 2017, 7:55 [IST]
