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Taxability of various components of salary – Income from Different Sources AY 2023-2024 (FY 2022-2023)

admin — Mon, 27 Jun 2022 14:22:45 +0000

Income from Different Sources AY 2023-24 (FY 2022-23) under Income Tax as amended by Finance Act, 2022

Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”.

Treatment of Income from Different Sources

I. Income under the head Salaries

1.1 Salary is defined to include:

a) Wages
b) Annuity
c) Pension
d) Gratuity
e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages
f) Advance of Salary
g) Leave Encashment
h) Annual accretion to the balance of Recognized Provident Fund
i) Transferred balance in Recognized Provident Fund
j) Contribution by Central Government or any other employer to Employees Pension Account as referred in 80CCD

1.2 Points to consider:

a) Salary income is chargeable to tax on “due basis” or “receipt basis” whichever is earlier.
b) Existence of relationship of employer and employee is must between the payer and payee to tax the income under this head.
c) Income from salary taxable during the year shall consists of following:
- Salary due from employer (including former employer) to taxpayer during the previous year, whether paid or not;
- Salary paid by employer (including former employer) to taxpayer during the previous year before it became due;

iii. Arrear of salary paid by the employer (including former employer) to taxpayer during the previous year, if not charged to tax in any earlier year;

Exceptions – Remuneration, bonus or commission received by a partner from the firm is not taxable under the head Salaries rather it would be taxable under the head business or profession.

1.3 Place of accrual of salary:

a) Salary accrues where the services are rendered even if it is paid outside India;
b) Salary paid by the Foreign Government to his employee serving in India is taxable under the head Salaries;
c) Leave salary paid abroad in respect of leave earned in India shall be deemed to accrue or arise in India.

Exceptions – If a Citizen of India render services outside India, and receives salary from Government of India, it would be taxable as salary deemed to have accrued in India.

1.4 Taxability of various components of salary:

S.No.	Section	Particulars	Taxability/Exemption
1.	17	Basic salary	Fully taxable
2.	17	Dearness Allowance (referred to as ‘DA’)	Fully taxable
3.	17	Bonus, fees or commission	Fully taxable

A. Allowances

4.	10(13A) read with Rule 2A	House rent allowance	Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai) c) Rent paid minus 10% of salary * Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rentii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10-10-2013].
5.	10(14)	Children education allowance	Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
6.	10(14)	Hostel expenditure allowance	Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
7.	10(14)	Transport Allowance granted to an employee to meet expenditure for the purpose of commuting between place of residence and place of duty	Rs. 3,200 per month granted to an employee, who is blind or deaf and dumb or orthopedically handicapped with disability of lower extremities
8.	Sec. 10(14)	Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.	Amount of exemption shall be lower of following: a) 70% of such allowance; orb) Rs. 10,000 per month.
9.	10(14)	Conveyance allowance granted to meet the expenditure on conveyance in performance of duties of an office	Exempt to the extent of expenditure incurred for official purposes
10.	10(14)	Travelling allowance to meet the cost of travel on tour or on transfer	Exempt to the extent of expenditure incurred for official purposes
11.	10(14)	Daily allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty	Exempt to the extent of expenditure incurred for official purposes
12.	10(14)	Helper/Assistant allowance	Exempt to the extent of expenditure incurred for official purposes
13.	10(14)	Research allowance granted for encouraging the academic research and other professional pursuits	Exempt to the extent of expenditure incurred for official purposes
14.	10(14)	Uniform allowance	Exempt to the extent of expenditure incurred for official purposes
15.	10(7)	Any allowance or perquisite paid or allowed by Government to its employees (an Indian citizen) posted outside India	Fully Exempt
16.	–	Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)	Fully Exempt.
17.	10(45)	Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax: a) Value of rent free official residence b) Value of conveyance facilities including transport allowance c) Sumptuary allowanced) Leave travel concession	Fully Exempt
18.	–	Allowances paid by the UNO to its employees	Fully Exempt
19.	Sec. 10(14) read with Rule 2BB	Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
20.	Sec. 10(14) read with Rule 2BB	Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
21.	Sec. 10(14) read with Rule 2BB	Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa	Up to Rs. 200 per month is exempt
22.	Sec. 10(14) read with Rule 2BB	Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 2,600 per month is exempt
23.	Sec. 10(14) read with Rule 2BB	Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 1,000 per month is exempt
24.	Sec. 10(14) read with Rule 2BB	Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 3,900 per month is exempt
25.	Sec. 10(14) read with Rule 2BB	Underground Allowance to employees working in uncongenial, unnatural climate in underground mines	Up to Rs. 800 per month is exempt
26.	Sec. 10(14) read with Rule 2BB	High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)	a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) is exemptb) Up to Rs. 1,600 per month (for altitude above 15,000 feet) is exempt
27.	Sec. 10(14) read with Rule 2BB	Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)	Up to Rs. 4,200 per month is exempt
28.	Sec. 10(14) read with Rule 2BB	Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)	Up to Rs. 3,250 per month is exempt
29.	10(14)	City Compensatory Allowance	Fully Taxable
30.	10(14)	Fixed Medical Allowance	Fully Taxable
31.	10(14)	Tiffin, Lunch, Dinner or Refreshment Allowance	Fully Taxable
32.	10(14)	Servant Allowance	Fully Taxable
33.	10(14)	Project Allowance	Fully Taxable
34.	10(14)	Overtime Allowance	Fully Taxable
35.	10(14)	Telephone Allowance	Fully Taxable
36.	10(14)	Holiday Allowance	Fully Taxable
37.	10(14)	Any Other Cash Allowance	Fully Taxable
38.	10(5)	Leave Travel Concession or Assistance (LTC/LTA), extended by an employer to an employee for going anywhere in India along with his family **Family includes spouse, children and dependent brother/ sister/parents. However, family doesn’t include more than 2 children of an Individual born on or after 01-10-1998. (Subject to certain conditions)	The exemption shall be limited to fare for going anywhere in India along with family twice in a block of four years: • Where journey is performed by Air – Exemption up to Air fare of economy class in the National Carrier by the shortest route • Where journey is performed by Rail – Exemption up to air-conditioned first class rail fare by the shortest route • If places of origin of journey and destination are connected by rail but the journey is performed by any other mode of transport – Exemption up to air-conditioned first class rail fare by the shortest route. • Where the places of origin of journey and destination are not connected by rail: * Where a recognized public transport system exists – Exemption up to first Class or deluxe class fare by the shortest route * Where no recognized public transport system exists – Exemption up to air conditioned first class rail fare by shortest route. Notes: i. Two journeys in a block of 4 calendar years is exempt ii. Taxable only in case of Specified Employees [See note 4]

B. Perquisites

39.	17(2)(i)/(ii) read withRule 3(1)	Rent free unfurnished accommodation provided to Central and State Government employees	License fees determined in accordance with rules framed by Government for allotment of houses shall be deemed to be the taxable value of perquisites.
40.	17(2)(i)/(ii)read withRule 3(1)	Unfurnished rent free accommodation provided to other employees	Taxable value of perquisites i. If house property is owned by the employer, the taxable value of perquisite shall be: A. 15% of salary, if population of city where accommodation is provided exceeds 25 lakhs B. 10% of salary, if population of city where accommodation is provided exceeds 10 lakhs but does not exceed 25 lakhs C. 7.5% of salary, if accommodation is provided in any other city ii. If house property is taken on lease or rent by the employer, the taxable value of perquisite shall be: i. Lease rent paid or payable by the employer or 15% of the salary, whichever is lower Salary includes: a) Basic Pay b) Dearness Allowance (only to the extent it forms part of retirement benefit salary) c) Bonus d) Commission e) All other allowances (only taxable portion) f) Any monetary payment which is chargeable to tax But does not include i. Value of any prerequisite ii. Employer’s contribution to PF iii. Benefits received at the time of retirement like gratuity, pension etc. Note:* 1) Rent free accommodation is not chargeable to tax if provided in remote area. 2) Rent free accommodation provided to High Court or Supreme Court Judges, Union Ministers, Leader of Opposition in Parliament, an official in Parliament and Serving Chairman and members of UPSC is tax free prerequisite. 3) The value so determined shall be reduced by the amount of rent, if any, recovered from the employee. 4) If employee is transferred and retain property at both the places, the taxable value of perquisites for initial period of 90 days shall be determined with reference to only one accommodation (at the option of the assessee). The other one will be tax free. However after 90 days, taxable value of perquisites shall be charged with reference to both the accommodations.
41.	17(2)(i)/(ii) read withRule 3(1)	Rent free furnished accommodation	Taxable value of perquisites shall be computed in following manner: a) Taxable value of perquisite assuming accommodation to be provided to the employee is unfurnished b) Add: 10% of original cost of furniture and fixtures (if these are owned by the employer) or actual higher charges paid or payable (if these are taken on rent by the employer). c) Less: The value so determined shall be reduced by the amount of rent, if any, recovered from the employee
42.	17(2)(i)/(ii) read withRule 3(1)	Accommodation provided in a hotel Hotel accommodation will not be chargeable to tax if : a) It is provided for a total period not exceeding in aggregate 15 days in the financial year; and b) Such accommodation in hotel is provided on employee’s transfer from one place to another place.	Taxable value of perquisite shall be lower of following: a) Actual charges paid or payable by the employer to such hotel; or b) 24% of salary
43.	17(2)(viii)read with Rule 3(2)	Motor Car / Other Conveyance	Taxable value of perquisites (See Note 1 below)
43A.	17(2)(iv)	Any sum paid by employer in respect of any obligation of an employee	Fully Taxable
44.	17(2)(viii)read with Rule 3(3)	Services of a domestic servant including sweeper, gardener, watchmen or personal attendant (taxable only in case of specified employee [See Note 4])	Taxable value of perquisite shall be salary paid or payable by the employer for such services less any amount recovered from the employee.
45.	17(2)(viii)read with Rule 3(4)	Supply of gas, electricity or water for household purposes	Taxable value of perquisites: ➢ Manufacturing cost per unit incurred by the employer., if provided from resources owned by the employer; ➢ Amount paid by the employer, if purchased by the employer from outside agency Note: 1. Any amount recovered from the employee shall be deducted from the taxable value of prerequisite. 2. Taxable in case of specified employees only [See note 4]
46.	17(2)(viii)read with Rule 3(5)	Education Facilities	Taxable value of perquisites (See Note 2 below)
47.	17(2)(viii)read with Rule 3(6)	Transport facilities provided by the employer engaged in carriage of passenger or goods (except Airlines or Railways)	Value at which services are offered by the employer to the public less amount recovered from the employee shall be a taxable perquisite
48.	17(2)(v)	Amount payable by the employer to effect an insurance on life of employee or to effect a contract for an annuity	Fully Taxable
49.	17(2)(vi) read with Rule 3(8)/3(9)	ESOP/ Sweat Equity Shares	Fair Market value of shares or securities on the date of exercise of option by the assessee less amount recovered from the employee in respect of such shares shall be the taxable value of perquisites. Fair Market Value shall be determined as follows: a) In case of listed Shares: Average of opening and closing price as on date of exercise of option (Subject to certain conditions and circumstances) b) In case of unlisted shares/ security other than equity shares: Value determined by a Merchant Banker as on date of exercise of option or an earlier date, not being a date which is more than 180 days earlier than the date of exercise of the option. Note:The Finance Act, 2020 has deferred the taxation of perquisite in case of start-ups from date of allotment to the earliest of the following three dates: 1. Expiry of 48 months from the end of the relevant assessment year; 2. Sale of such shares by the employees; 3. Date on which employee ceases to be employee of the start-up. The eligible start-up shall accordingly, be required to deposit tax with the government within 14 days of the happening of any of the above events (whichever is earlier). However, Section 17(2)(vi) has not been amended, thus the income shall be computed in the year in which shares are allotted but tax shall be paid in subsequent year.
50.	17(2)(vii)	Employer’s contribution towards superannuation fund	Taxable in the hands of employee to the extent such contribution exceeds Rs.1,50,000
51.	17(2)(viii) read with Rule 3(7)(i)	Interest free loan or Loan at concessional rate of interest	Interest free loan or loan at concessional rate of interest given by an employer to the employee (or any member of his household) is a perquisite chargeable to tax in the hands of all employees on following basis: 1) Find out the “maximum outstanding monthly balance” (i.e. the aggregate outstanding balance for each loan as on the last day of each month); 2) Find out rate of interest charged by the SBI as on the first day of relevant previous year in respect of loan for the same purpose advanced by it; 3) Calculate interest for each month of the previous year on the outstanding amount (mentioned in Step 1) at the rate of interest given in Step 24) From the total interest calculated for the entire previous year (step 3), deduct interest actually recovered, if any, from employee5) The balance amount (Step 3-Step 4) is taxable value of perquisiteNothing is taxable if: a) Loan in aggregate does not exceed Rs. 20,000; or b) Loan is provided for treatment of specified diseases ( Rule 3A) like neurological diseases, Cancer, AIDS, Chronic renal failure, Hemophilia (specified diseases). However, exemption is not applicable to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.
52.	17(2)(viii) read with Rule 3(7)(ii)	Facility of travelling, touring and accommodation availed of by the employee or any member of his household for any holiday	a) Taxable value of perquisite shall be expenditure incurred by the employer less amount recovered from employee. b) Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public.
53.	17(2)(viii) read with Rule 3(7)(iii)	Free food and beverages provided to the employee	1) Fully Taxable: Free meals in excess of Rs. 50 per meal less amount paid by the employee shall be a taxable prerequisite 2) Exempt from tax: Following free meals shall be exempt from tax: a) Food and non-alcoholic beverages provided during working hours in remote area or in an offshore installation; b) Tea, Coffee or Non-Alcoholic beverages and Snacks during working hours are tax free perquisites; c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable, if cost to the employer is Rs. 50(or less) per meal.
54.	17(2)(viii) read with Rule 3(7)(iv)	Gift or Voucher or Coupon on ceremonial occasions or otherwise provided to the employee	a) Gifts in cash or convertible into money (like gift cheque) are fully taxable b) Gift in kind up to Rs.5,000 in aggregate per annum would be exempt, beyond which it would be taxable.
55.	17(2)(viii) read with Rule 3(7)(v)	Credit Card	a) Expenditure incurred by the employer in respect of credit card used by the employee or any member of his household less amount recovered from the employee is a taxable prerequisite b) Expenses incurred for official purposes shall not be a taxable perquisite provided complete details in respect of such expenditure are maintained by the employer
56.	17(2)(viii) read with Rule 3(7)(vi)	Free Recreation/ Club Facilities	a) Expenditure incurred by the employer towards annual or periodical fee etc. (excluding initial fee to acquire corporate membership) less amount recovered from the employee is a taxable prerequisite b) Expenses incurred on club facilities for the official purposes are exempt from tax. c) Use of health club, sports and similar facilities provided uniformly to all employees shall be exempt from tax.
57.	17(2)(viii) read with Rule 3(7)(vii)	Use of movable assets of the employer by the employee is a taxable perquisite	Taxable value of perquisites a) Use of Laptops and Computers: Nil b) Movable asset other than Laptops, computers and Motor Car: 10% of original cost of the asset (if asset is owned by the employer) or actual higher charges incurred by the employer (if asset is taken on rent) less* amount recovered from employee.See Note 1* for computation of perquisite value in case of use of the Motor Car
58.	17(2)(viii) read with Rule 3(7)(viii)	Transfer of movable assets by an employer to its employee	Taxable value of perquisites a) Computers, Laptop and Electronics items: Actual cost of asset less depreciation at 50% (using reducing balance method) for each completed year of usage by employer less amount recovered from the employee b) Motor Car: Actual cost of asset less depreciation at 20% (using reducing balance method) for each completed year of usage by employer less amount recovered from the employee c) Other movable assets: Actual cost of asset less depreciation at 10% (on SLM basis) for each completed year of usage by employer less amount recovered from the employee.
59.	17(2)(viii) read with Rule 3(7)(ix)	Any other benefit or amenity extended by employer to employee	Taxable value of perquisite shall be computed on the basis of cost to the employer (under an arm’s length transaction) less amount recovered from the employee. However, expenses on telephones including a mobile phone incurred by the employer on behalf of employee shall not be treated as taxable perquisite.
60.	10(10CC)	Tax paid by the employer on perquisites (not provided for by way of monetary payments) given to employee	Fully exempt
61.	Proviso to section 17(2)	Medical facilities in India	a) Expense incurred or reimbursed by the employer for the medical treatment of the employee or his family (spouse and children, dependent – parents, brothers and sisters) in any of the following hospital is not chargeable to tax in the hands of the employee:i. Hospital maintained by the employer.ii. Hospital maintained by the Government or Local Authority or any other hospital approved by Central Governmentiii. Hospital approved by the Chief Commissioner having regard to the prescribed guidelines for treatment of the prescribed diseases.b) Medical insurance premium paid or reimbursed by the employer is not chargeable to tax.However, the medical facility is taxable only in case of Specified Employees [See note 4]
62.	Proviso to section 17(2)	Medical facilities outside India	Any expenditure incurred or reimbursed by the employer for medical treatment of the employee or his family member outside India is exempt to the extent of following (subject to certain condition): a. Expenses on medical treatment – exempt to the extent permitted by RBI. b. Expenses on stay abroad for patient and one attendant – exempt to the extent permitted by RBI. c. Expenditure incurred on travelling of patient and one attendant- exempt, if Gross Total Income (before including the travel expenditure) of the employee, does not exceed Rs. 2,00,000.
63.	Proviso to section 17(2)	Medical facility or reimbursement for COVID-19 treatment	Any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family in respect of any illness relating to Covid-19, shall not be taxable as perquisite in the hands of the employee. However, this benefit shall be allowed subject to certain conditions as may be notified by the Government in this behalf. [applicable w.e.f. Assessment Year 2020-21]

C. Deduction from salary

1.	16(ia)	Standard Deduction	Rs. 50,000 or the amount of salary, whichever is lower (Any salaried person & pensioners)
2.	16 (ii)	Entertainment Allowance received by the Government employees (Fully taxable in case of other employees)	Least of the following is exempt from tax: a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefits or other prerequisite) c) Actual entertainment allowance received
3.	16(iii)	Employment Tax/ Professional Tax.	Amount actually paid during the year. However, if professional tax is paid by the employer on behalf of its employee than it is first included in the salary of the employee as a perquisite and then same amount is allowed as deduction.

D. Retirement Benefits

Leave Encashment

1.	10(10AA)	Encashment of unutilized earned leave at the time of retirement of Government employees	Fully Exempt
2.	10(10AA)	Encashment of unutilized earned leave at the time of retirement of other employees (not being a Government employee)	Least of the following shall be exempt from tax: a) Amount actually received b) Unutilized earned leave* X Average monthly salary c) 10 months Average Salary** d) Rs. 3,00,000 * While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each completed year of service rendered to the current employer Average salary = Average Salary* of last 10 months immediately preceding the retirement ***Salary = Basic Pay + DA (to the extent it forms part of retirement benefits)+ turnover based commission

Retrenchment Compensation

10(10B)

Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947 (Subject to certain conditions).

Least of the following shall be exempt from tax:
a) Amount calculated as per section 25F(b)of the Industrial Disputes Act, 1947;
b) Rs. 5,00,000; or
c) Amount actually received
Note:
i. Relief under Section 89(1) is available
ii. 15 days average pay for each completed year of continuous service or any part thereof in excess of 6 months is to be adopted under section 25F(b) of the Industrial Disputes Act,1947

Gratuity

4.	10(10)(i)	Gratuity received by Government Employees (Other than employees of statutory corporations)	Fully Exempt
5.	10(10)(ii)	Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).	Least of following amount is exempt from tax: 1. (15/26) X Last drawn salary* X completed year of service or part thereof in excess of 6 months. 2. Rs. 20,00,000 3. Gratuity actually received. 7 days in case of employee of seasonal establishment. * Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
6.	10(10)(iii)	Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).	Least of following amount is exempt from tax: 1. Half month’s Average Salary* X Completed years of service 2. Rs. 20,00,000 3. Gratuity actually received. Average salary = Average Salary of last 10 months immediately preceding the month of retirement * Salary = Basic Pay + DA (to the extent it forms part of retirement benefits)+ turnover based commission

Pension

7.	–	Pension received from United Nation Organization by the employee of his family members	Fully Exempt
8.	10(10A)(i)	Commuted Pension received by an employee of Central Government, State Government, Local Authority Employees and Statutory Corporation	Fully Exempt
9.	10(10A)(ii)	Commuted Pension received by other employees who also receive gratuity	1/3 of full value of commuted pension will be exempt from tax
10.	10(10A)(iii)	Commuted Pension received by other employees who do not receive any gratuity	1/2 of full value of commuted pension will be exempt from tax
11.	10(19)	Family Pension received by the family members of Armed Forces	Fully Exempt
12.	57(iia)	Family pension received by family members in any other case	33.33% of Family Pension subject to maximum of Rs. 15,000 shall be exempt from tax

Voluntary Retirement

13.

10(10C)

Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions)

Least of the following is exempt from tax:
1) Actual amount received as per the guidelines i.e. least of the following
a) 3 months salary for each completed year of services
b) Salary at the time of retirement X No. of months of services left for retirement; or
2) Rs. 5,00,000

Provident Fund

14.

–

Employee’s Provident Fund

For taxability of contribution made to various employee’s provident fund and interest arising thereon see Note 3.

National Pension System (NPS)

15.

10(12A)/10(12B)

National Pension System

Any payment from the National Pension System Trust to an assessee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed 60% of the total amount payable to him at the time of such closure or his opting out of the scheme.

Note: Partial withdrawal from NPS shall be exempt to the extent of 25% of amount of contributions made by the employee.

E. Arrear of Salary and relief under section 89(1)

1.	15	Arrear of salary and advance salary	Taxable in the year of receipt. However relief under section 89 is available
2.	89	Relief under Section 89	If an individual receives any portion of his salary in arrears or in advance or receives profits in lieu of salary, he can claim relief as per provisions of section 89 read with rule 21A
3.	89A	Relief under 89A	Relief from taxation in income from retirement benefit account maintained in a notified country in accordance with Rule 21AAA.

F. Other Benefits

1.	–	Lump-sum payment made gratuitously or by way of compensation or otherwise to widow or other legal heirs of an employee who dies while still in active service [Circular No. 573, dated 21-08-1990]	Fully exempt in the hands of widow or other legal heirs of employee
2.	–	Ex-gratia payment to a person (or legal heirs) by Central or State Government, Local Authority or Public Sector Undertaking consequent upon injury to the person or death of family member while on duty [Circular No. 776, dated 08-06-1999]	Fully exempt in the hands of individual or legal heirs
3.	–	Salary received from United Nation Organization [Circular No. 293, dated 10-02-1981]	Fully exempt
4.	10(6)(ii)	Salary received by foreign national as an officials of an embassy, high commission, legation, consulate or trade representation of a foreign state	Fully exempt if corresponding official in that foreign country enjoys a similar exemption
5.	10(6)(vi)	Remuneration received by non-resident foreign citizen as an employee of a foreign enterprise for services rendered in India, if: a) Foreign enterprise is not engaged in any trade or business in India b) His stay in India does not exceed in aggregate a period of 90 days in such previous year c) Such remuneration is not liable to deducted from the income of employer chargeable under this Act	Fully exempt
6.	10(6)(viii)	Salary received by a non-resident foreign national for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year.	Fully exempt
7.	–	Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions).	Fully exempt

The post Taxability of various components of salary – Income from Different Sources AY 2023-2024 (FY 2022-2023) appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

TA DA Claim for the entire period of his stay at Temporary duty for special case of COVID-19 situation

admin — Mon, 15 Nov 2021 04:52:21 +0000

TA DA Claim for Temporary duty special case of COVID-19

Processing and payment of TA/DA claims on Temporary Duty on account of special situation of COVID19 Pandemic

O/o the Principal Controller of Defence Accounts (Officers)

Golibar Maidan, PUNE-411001.
Technical section CircularNo-18
Date: 11/11/2021

Subject: Processing and payment of TA/DA claims on Temporary Duty on account of special situation of COVID19 Pandemic

Of late a case has come to the notice and knowledge of the O/o PCDA (QO) Pune, wherein an Army Officer proceeded on Temporary duty for a specified period. The Officer was tested Covid positive during the temporary duty period and as per Epidemic Act/ NDMA Authority and State Administration instructions, the Officer was quarantined per force which led to his forced overstay in the Temporary Duty station. The Officer submitted his TA/DA Claim for the entire period of his stay at Temporary duty station along with Detention Certificate from the Temporary duty station covering the entire period of his stay at Temporary Duty station for regularisation and payment.

2. The case has since been got examined in light of the provision of the following Gol Orders which are stated below viz

i. DoPT, New Delhi OM No 13020/ 1/2019-Estt(E) dt 07/06/2021 regarding, treatment of Quarantine period during Covid19 pandemic as period on duty.
ii. MoD, DMA, New Delhi F. No A/30555/COVID-19/GS/DGMT dt 28.08.2020 stipulates that the power to regularise the disruption in Training/ Study leave period is delegated to the Dy COAS for the period from 20/3/2020 to 30/06/2021.
iii. MoD, DMA, New Delhi F. No A/30555/COVID-19/GS/DGMT dt 26/11/2020 stipulates that the power to regularise the disruption in Training/Study leave period stands delegated to Army Commander, Hqrs ARTRAC, Shimla.
iv. Subsequently, extension for regularisation of disruption in Training/Study leave was further extended from 01/07 2021 to 30/6/ 2022 vide MoD, DMA, New Delhi F. No A/30555/COVID-19/GS/DGMT dt 18/06/2021.
v. Rule 91 of Travel Regulation stipulates that any move on duty which is ordered for a period of less than 180 days will be classified as temporary duty and TA/DA will be admissible during that specified period of TD.

3. On the analogy of the above orders which provide for extension to regularise forced overstay at training establishments and regularisation of quarantine period, it has since been decided by Competent Authority that the unprecedented situation was a fait accompli, force majeure eventuality and beyond the control of the Officer, such TA/DA claims may please be admitted in audit on the basis of Detention Certificate covering the entire period of stay in light of the above orders available /applicable for the same. The Officers will be entitled for TA/DA as a special case on account of Covid-19 pandemic disruption and divine wrath as per his entitlement after production and submission of all relevant documents warranted in audit (Original receipts) seeking the approval of competent authority.

4. The above order may be got noted by all for strict compliance. Any grievance from Army Officers for non admittance of such claims will be viewed seriously.

5. This is issued with the kind approval of the PCDA (QO) Pune.

-sd–
(Smt. A R Chaudhury, IDAS)
ACDA (Tech)

TA DA Claim for Temporary duty special case of COVID-19

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Government Employees of Union Territories of Jammu & Kashmir and Ladakh to get all 7th CPC Allowances from 31st October 2019

admin — Tue, 22 Oct 2019 09:47:40 +0000

Government Employees of Union Territories of Jammu & Kashmir and Ladakh to get all 7th CPC Allowances from 31st October 2019

Central government news today – 7th CPC Allowances

Ministry of Home Affairs
Government Employees of UT of Jammu & Kashmir and UT of Ladakh to get all 7th CPC Allowances from 31st October 2019

22 OCT 2019

After the Parliament passed the Jammu and Kashmir Reorganization Bill, 2019, Prime Minister, Shri Narendra Modi addressed the nation on 8th August, 2019, wherein he announced that all the financial facilities being given to the employees of other Union Territories (UT), as per the recommendations of 7th CPC, would soon be extended to the employees of UT of Jammu & Kashmir and UT of Ladakh.

Also check: 7TH PAY COMMISSION TRANSPORT ALLOWANCE

Accordingly, Union Home Minister, Shri Amit Shah has approved the proposal of payment of all 7th CPC allowances to the Government employees of UT of Jammu & Kashmir and UT of Ladakh, which shall come into existence from 31st October, 2019. Union Home Ministry has issued orders in this regard. The move will benefit 4.5 lakh Government employees, who are working in the existing State of Jammu & Kashmir and will become the employees of UT of Jammu & Kashmir and UT of Ladakh from 31st October, 2019.

The annual financial implication of 7th CPC allowances like Children Education Allowance, Hostel Allowance, Transport Allowance, LTC, Fixed Medical Allowance etc. in respect of 4.5 lakh Government employees of existing State of Jammu & Kashmir shall be Rs. 4800 crore tentatively:

S.No.	Description	Amount (Rs.in Crore)
1	i) Children Education Allowance ii) Hostel Allowance	607.00 1823.00
2	Transport Allowance	1200.00
3	Leave Travel Concession (LTC)	1000.00
4	Fixed Medical Allowance	108.00
5	Other Allowances	62.00
	Total	4800.00

Source: PIB

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Employee eligibility for HRA (House Rent Allowance) who are not residing in Government Quarters

admin — Mon, 30 Sep 2019 13:43:55 +0000

Grant of House Rent Allowance (HRA) who have vacated Government Quarters.

Shiva Gopal Mishra
Secretary

Ph:23382286
National Council (Staff side)
Joint consultative Machinery
For central government employees
13-C, Ferozshah Road, New Delhi – 110 001
E Mail:nc.jcm.np@gmail.com

No.NC-JCM-2019/DOPT (HRA)

September 26, 2019

The Additional Secretary (Pers)
Government of India
Ministry of Finance
Department of Expenditure
North Block
New Delhi

Respected Madam,

Sub: Grand of House Rent Allowance to the employees who have vacated Government Quarters.

The above demand was discussed as Item No.16 of the standing committee meeting of the National council (JCM) held on 7-3-2019. The extract from the minutes of the above meeting is given below for your kind ready reference.

Also check: 7TH PAY COMMISSION House Rent Allowance (HRA)

Staff Side said that they are grateful for the Govt. order dated 5-3-2019 issued by the Dept. of Expenditure on the subject matter. However there is a difficulty in implementing this order, in the Min, of Railways & Defence, as these Ministries have their own residential colonies and it is also mentioned in the ibid order that ‘ wherever feasible’ . This provision may have to be deleted, so that the employees who have vacate the quarters due to less facilities etc., are able to avail HBA from various sources etc. and are entitled for HRA.

Joint Secretary (Pers) agreed to consider the proposal of the staff side

The Department of Expenditure have not yet issued the above mentioned amendment in the Department of Expenditure order dated 5-3-2019

Also read: Payment of 7th CPC HRA @ 8% of the Basic Pay to Personnel Below Officers Rank (PBORs)

As agreed in the meeting it is requested that an amendment of the above Government Orders may please be issued by deleting the provision “ Wherever feasible” . A copy of the amendment orders may please be endorsed to this office.

Thanking you.

Yours sincerely,
(SHIVA GOPAL MISHRA)
Secretary

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NFIR & Railway Board Meeting – Shri Guman Singh, President raised following issues

admin — Fri, 27 Sep 2019 15:35:53 +0000

NFIR & Railway Board Meeting – Shri Guman Singh, President raised following issues

Every Railwayman should work to curb avoidable expenses, he said and raised following issues for taking speedy action:

Also read: Highlights of PNM Meeting Dr. M. Raghavaiah, General Secretary / NFIR

The allowances to all the staff was paid from 1st of July 2016 but the KMA and other related allowances to running staff have not been decided. Such delay is a cause of Railwaymen blaming the Federation and gives room for staff agitations. This type of situation cannot do well to the institution. The Railway Board should seriously think and resolve the issues quickly.
Railway Board constituted a Task Force Safety Committee consisting of five very senior officers (General Managers), the Committee gave recommendations on 10th January 2017 wherein it has been mentioned that the running staff who join duty after leave at 0:00 hours and worked train immediately after resumption, commit accidents. Therefore, the Committee recommended that the running staff should not be booked to work train before 8 ‘o’ clock in the morning when they resume duty after availing leave.
Unfortunately recommendations of the Committee are not being followed and the running staffs are booked invariably to work first train after 0:00 hours on resumption from leave. He urged the Member Staff to see that suitable instructions are issued to the Zonal Railways to follow the recommendations of the Committee to avoid situations which may cause accidents.
The Railway Board issued orders in the year 2004, as a result of decision arrived at, in the DC/JCM meeting, but unfortunately this decision has been changed unilaterally in the year 2007 by the Board. This change has created adverse situation like denial in granting appointment on compassionate grounds. He urged the MS that the order of 2004 be restored without delay.
Time and again the Railway Board had issued detailed guidelines, not to retain money from settlement dues of railway employees on superannuation, but unfortunately these orders are being violated by withholding heavy amounts from settlement despite the fact that employees are not in occupation of Railway quarter and equally no disciplinary action pending against them.
Retired Railway employees have been re-engaged against vacancies, but they are not paid Night Duty Allowance though they perform night duty. OT Allowance is also not paid to these re-engaged staff when they work over hours of duty at out stations. He empathetically stated that injustice is being caused to the retired Railway employees who are re-engaged as all such rules are equally applicable to them when they have been re-engaged to Railway service.
The PPOs of running staff are not being revised because concordance tables have not been provided although orders have been issued to revise their pension pay orders by sighting illustrations, but it is not working as the staff have developed habit of working with the assistance of concordance table, as such concordance tables be
prepared and issued.
Regarding filling up of vacancies, he expressed satisfaction on the information given by Member Staff that by the end of May 2019, a panel of 62,960 selected candidates of Pay Matrix Level-I and similarly panels of ALPs and SMs will also be made available. He stated that occurrence of 3% vacancies of total cadre is through natural attrition, therefore the sequence of formation of panels should be planned and followed in a methodical manner as a regular course.
Case of payment of honorarium to cashiers and other accounts staff of NWR for the year 2008, 2009 and 2010, is pending in the Railway Board for sanction. The inordinate delay in payment is a matter of concern for everyone. He requested Member Staff for early communication of sanction to the NWR for which NFIR has also made reference.
Get More Indian railway news for railway employee
The condition of railway quarters continues to remain deplorable as there is no maintenance. Our position becomes very embarrassing when staff complain about differential treatment as there is zero maintenance of staff quarters while on the other hand the quarters of officers are well maintained. He requested that immediate action be taken in the matter to mitigate the staff complaints.

Source: NFIR

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Delhi High Court Order – MACP is effective from 1.1.2006 as per 6th Pay Commission recommendation, as it forms part of Pay and NOT allowances

admin — Wed, 15 May 2019 12:58:14 +0000

IN THE HIGH COURT OF DELHI AT NEW DELHI
W.P.(C) 3549/2018

SUNIL KUMAR TYAGI

….. Petitioner

Through:
Ms. Asha Jain Madan, Advocate with
Mr. Mukesh Jain, Advocate.

versus

UNION OF INDIA AND ANR

….. Respondents

Through:
Ms Archana Gaur and Ms Ridhima
Gaur, Advocates for UOI.

CORAM:
JUSTICE S.MURALIDHAR
JUSTICE I.S.MEHTA

ORDER
01.05.2019

There are three prayers in this writ petition – one is for a direction to the Respondents to grant the Petitioner the benefit of the first Assured Career Progression (‘ACP’) Scheme with effect from October, 1999, when the Petitioner had actually completed 12 years of service instead of 30th December, 2000. The second is that the benefit of the MACP should be granted with effect from October, 2007 (instead of 1st September, 2008), when the Petitioner completed 20 years of service. The third prayer is that the benefit of the MACP should be given by placing the Petitioner in the scale of Sub Inspector (‘SI’) i.e. Rs.5500-9000 (pre-revised).
As far as the first prayer is concerned, the same has already been granted by the Respondents to the Petitioner. As far as the second prayer is concerned, the issue is covered in favour of the Petitioner by the judgment dated 8th December, 2017 of the Supreme Court in Union of India v. Balbir Singh Turn (2018) I I SCC 99. The Supreme Court has in the above judgment clarified that the benefit of the MACP which was on the basis of the recommendations of the Sixth Central Pay Commission to be extended with effect from 1st January, 2006 and not from 1st September, 2008, as was directed by the Respondents.
As regards the fixing of the correct pay scale of the Petitioner, it is seen that in BSF/General Duty, there is no post of ASI/General Duty in the pay scale of Rs.4000-100-6000 (pre-revised) which had been converted into Pay Band-I i.e. 5200-20200 in the grade pay of Rs.2800 having pay band of 8560 with the total pay (basic pay) of Rs.11360. Thus, in the case of the Petitioner, the second financial upgradation was required to be given in the pay scale of Rs.5500-9000 (pre-revised). Since this was not granted to other similarly placed as the Petitioner, writ petitions were filed in this Court. A series of judgments have been passed by this Court in those writ petitions, as a result of which the Respondents extended the benefit of financial upgradation in the pay scale of Rs.5500-9000 to all personnel who had completed 24 years of regular service during the period 9th August, 1999 to 31st August, 2008.
The counter affidavit of the Respondents does not dispute the applicability of the judgment of the Supreme Court in Union of India v Balbir Singh Turn (supra) or the applicability of the other orders of this Court, including the order dated 18th December, 2015 in W.P.(C) No.11725 (Digamber Singh ASI v UOI) concerning the appropriate pay scale for the purposes of grant of the MACP benefits.
Consequently, this Court directs as under:

i) The Petitioner would be given the benefit of the MACP with effect from October, 2007 instead of 1st September, 2008; and
ii) The above benefit will be given by placing the Petitioner in the pay scale of of Sub Inspector i.e. 5500-9000 (pre-revised).
iii) The appropriate orders will be issued and the arrears will be paid to the Petitioner within a period of 12 weeks from today, failing which the Respondents will be liable to pay simple interest @ 6% per annum on the arrears for the period of delay.
The petition is disposed of in above terms. No costs.

S. MURALIDHAR, J.
I.S.MEHTA, J.
MAY 01, 2019

Source: Delhi high court

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Revision of Scales of Pay and Allowances in respect Of Non-Executives (Workmen) of AAI w.c.f. 01.01.2017

admin — Tue, 26 Feb 2019 09:47:40 +0000

Revision of Scales of Pay and Allowances in respect Of Non-Executives (Workmen) of AAI w.c.f. 01.01.2017

AIRPORTS AUTHORITY OF INDIA

No.A.60011/40/2017-HRPC/ 98

The Regional Executive Director
Airports Authority of India
Northern Western/Eastern/Southern/North-East Region
Delhi/Mumbai/Kolkata/Chennai/Guwahati

The Airport Director
Airports Authority of India
Kolkata/Chennai Airport

The Principal,
Civil AviatiOn Training College (CATC).

Bamrauli, Allahabad

Date: 22nd February. 2019
The Executive Director,
Airports Authority of India
RC&DU/FIU, New Delhi

The Director,
Indian Aviation Academy,
New Delhi

The General Manager,
Airports Authority of India
CRSD/E&M Workshop
New Delhi

OFFICE ORDER

Sub: Revision of Scales of Pay and Allowances in respect Of Non-Executives (Workmen) of AAI w.c.f. 01.01.2017

The Management of Airports Authority. of India (AAI) is pleased to announce the revision in pay scales for non-executives (workmen) of AAI w..e.f. 01.01.2017 consequent upon signing of Memorandum of Settlement (MoS) between the AAI Management and the Airports Authority Employees Union (Recognized Union) and confirmity of Ministry of Civil Aviation bide Letter No. AV-24015/6/2016-AAI-MOCA Dated: 19th February. 2019.

2. Accordingly, pay-scales, DA, perks & allowances, etc. in respect of non-executives (workmen) of AAI stands revised w.e.f. 01.01.2017 as under:

3. APPLICABILITY & COVERAGE

(i) All the regular Non-Executives of AA1 who were on the rolls of AAI is on 01.01.2017 and continue to be on the rolls of AAI and those joining, thereafter.

(ii) The employees who have left the services of the organization on or after 01.01.2017 due to resignation, retirement or death will be paid arrears on account of wage revision upto the date they were in service.

(iii) The benefit of wage revision will, however, not be allowed to employees from the date they have ceased to be in the services of the organization on the following grounds:

a) Dismissal/ removal

b) Left service without acceptance of resignation

4. DURATION

The existing scales of pay of Non-Executives are revised w.e.f. 01.01.2017. the revised scales will be effective for a period of 10 years.

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Special concessions / facilities to Central Government Employees working in Kashmir valley in attached / subordinate offices or PSUs falling under the control of Central Government

admin — Mon, 25 Feb 2019 06:48:27 +0000

Special concessions / facilities to Central Government Employees working in Kashmir valley in attached / subordinate offices or PSUs falling under the control of Central Government

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

E(NG)II/2006/PO/NR/10

New Delhi, dated 19.02.2019

The General Manager (P)
Northern Railway
Baroda House,
New Delhi.

Sub: Special concessions/facilities to Central Government Employees working in Kashmir valley in attached/subordinate offices or PSUs falling under the control of Central Government.

Please refer to Board’s letter of even number dated 26.10.2016 enclosing therewith a copy of DoP&T’s O.M. No. 18016/1/2016-Estt(L) dated 11.08.2016 on the above subject. Vide instructions issued by DoP&T O.M. 18016/3/2018-Estt. (L) dated 08.01.2019, it has been decided to extend these special concessions for a further period of two years w.e.f. 01.01.2018. The instructions covered in the above OM will apply mutatis mutandis to Railway Servants also. A copy of the said O.M. dated 08.01.2019 is enclosed for information and necessary action.

This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

Hindi version will follow.

DA: as above.

Sd/-
(NEERAJ KUMAR)
Director Estt. (N)II
Railway Board

Source:Indian Railways

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Railway Board have decided to constitute a Committee for inclusion of fresh categories within the ambit of Risk & Hardship Allowance

admin — Mon, 18 Feb 2019 08:06:45 +0000

Railway Board have decided to constitute a Committee for inclusion of fresh categories within the ambit of Risk & Hardship Allowance

(GOVERNMENT OF INDIA)
(MINISTRY OF RAILWAYS)
(RAILWAY BOARD)

No.ERB-I/2019/23/09

New Delhi, dated 11.02.2019

ORDER

Ministry of Railways (Railway Board) have decided to constitute a Committee for inclusion of fresh categories within the ambit of Risk & Hardship Allowance. The Committee will consist of the following:-

(i) EDPC-II, Railway Board … Convener
(ii) EDF(E), Railway Board … Member
(iii) EDCE(G), Railway Board … Member
(iv) Sh. Shiv Gopal Mishra, General Secretary/AIRF … Member
(v) Shri Guman Singh, President/NFIR … Member

The Terms of Reference of the Committee will be as under:-

“To holistically examine the inclusion of fresh categories within the ambit of Risk and Hardship Allowance introduced by 7th CPC.”

The tenure of the Committee will be Six months from the date of its constitution.
The Headquarters of the Committee will be at New Delhi.
PC-VII branch, Railway Board will be the Nodal branch for functioning of the Committee. Therefore, submission of report of the Committee for consideration of Railway Board, implementation of its recommendations and all related issues including Parl, Questions, RTI cases and other formalities with regard to the Committee, shall be dealt with by PC-VII branch, Railway Board.
The Convener and Members of the Committee will draw TA/DA as per extant rules.

(Vijay Kumar)
Under Secretary (Estt)-I
Railway Board

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7th CPC: Allowance to Armed Forces

admin — Mon, 31 Dec 2018 12:19:12 +0000

Ministry of Defence
Allowance to Armed Forces

31 DEC 2018

Taking note of the rigours of military life, the 6th Central Pay Commission (CPC) had recommended an additional, separate element of Pay for the Defence Forces called Military Service Pay (MSP) which the CPC intended would also maintain the edge enjoyed by the Defence Forces over the civilian scales. The Commission was of the view that the rate of MSP as a percentage of the existing pay has to be maintained in case of officers (up to the level of Brigadier / equivalent) as well as PBORs because the difficulties faced in field situations by both these categories are similar.

The 7th Central Pay Commission (CPC) had considered all aspects with regard to applicability of MSP including the rates while making its recommendations. This was done after considering the views of the Services in the matter. The 7th CPC has consciously decided not to create additional categories of personnel for the grant of MSP or to disturb the slab rates for the four categories for which it is being paid up to the level of Brigadiers. The Government after carefully considering the recommendations of the 7th CPC in respect of MSP has accepted and notified the same.

Besides MSP, Service personnel are entitled to several other allowances such as High Altitude Allowance, Field Area / Modified Field Area Allowance, Counter Insurgency Allowance etc which are paid based on risks and hardships involved at a location / in an operation.

Engine-wise capacity and interval in years allowed as regards vehicle PURCHASE for officers and jawans:

Eligibility
S. No.	Category	CC	Periodicity
(a)	Officers (including Retd / Widows)	3000	Once in Four Years.
(b)	JCOs granted Honorary Commission & Equivalent (including Retd & Widows)	2500	Once in Seven Years.
(c)	JCOs & Equivalent (including Retd & Widows)	2000	Once in Service and Once after Retirement. First Car after ten years of Service. Gap between purchases of Two Cars to be Ten years. If the late husband had purchased a car each while in service / after retirement then the widow will not be eligible to buy a car. In case late husband had purchased only one car then widow can buy one car through CSD after gap of 10 years from the date of last purchase.
(d)	OR & Equivalent (including Retd & Widows)	1800	Once in Service and Once after Retirement. First Car after ten years of Service. Gap between purchases of Two Cars to be Ten years. If the late husband had purchased a car each while in service / after retirement then the widow will not be eligible to buy a car. In case late husband had purchased only one car then widow can buy one car through CSD after gap of 10 years from the date of last purchase.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri Vishambhar Prasad Nishad and others in Rajya Sabha today.

PIB

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