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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.

Revision of Entitlement of TA and DA to JCM Members after implementation of Seventh CPC recommendations

admin — Wed, 12 Sep 2018 12:27:21 +0000

Revision of Entitlement of TA and DA to JCM Members after implementation of Seventh CPC recommendations

Government of India
Ministry of Defence
(Department of Defence)
D (Civ-II)

Subject: Revision of Entitlement of TA and DA to JCM Members after implementation of Seventh CPC recommendations

Attension is invited to the DoPT’s O.M. No.8/10/2008-JCA dated 20.08.2018 on the above mentioned subject. The O.M. is available on the website of DoPT at the following path www.persmin.nic.in -> Department of Personnel & Training (DoPT) -> O.Ms & Ordres -> Establishment -> JCM. The O.M. will also be available on the website of Ministry of Defence i.e. www.mod.gov.in -> Department of Defence (DoD) -> O.Ms & Order.

2. All the addressees are requested to download the same from the website of DoPT/MoD for information and necessary action.

sd/-
(Dalpat Singh)
Under Secretary to the Govt of India

Source: www.mod.gov.in

The post Revision of Entitlement of TA and DA to JCM Members after implementation of Seventh CPC recommendations appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Frequently Observed Shortcomings in TA / DA Claims

admin — Tue, 26 Jul 2016 03:53:49 +0000

Frequently Observed Shortcomings in TA / DA Claims

Principal Controller of Defence Accounts (Officers)

TRANSPORTATION WING

FREQUENTLY OBSERVED SHORTCOMINGS IN TA/DA CLAIMS

I TEMP DUTY CLAIMS

II PMT DUTY

III LTC Claims

Authority: https://pcdaopune.gov.in/

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DA Over 100% – Admissible of supplementary claims for difference on arrears of TA/DA

admin — Wed, 23 Sep 2015 07:44:08 +0000

DA Over 100% – Admissible of supplementary claims for difference on arrears of TA/DA

Government of India
Ministry of Railways
(Railway Board)

RBE No. 108/2015

No.F(E)I/2015/AL-28/46

New Delhi, dated 21.09.2015

The General Managers,
All Indian Railways etc.
(As per Standard Mailing List)

Sub: Payment of difference on arrears of TA/DA arising out of Railway Board’s letter No.F(E)I/2011/AL-28/18 dt.29.4.14.

One of the Railways has sought clarification regarding a supplementary claim for difference of TA/DA arising out of enhancement of Dearness allowance upto 100% w.e.f. 1.1.14 after issue of Board’s letter No.F(E)/2011/AL/28/18 dt. 29.04.14.

2. The matter has been examined in Board’s office and it is clarified that where TA/DA has been paid at old rates supplementary claims for difference of TA/DA would be admissible in respect of official tours made on or after 01.01.14 consequent to increase in the rates of TA/DA by 25%, w.e.f. 01.01.2014.

3. This disposes of South Eastern Railway’s letter No.ENG/Bills/TA&DA/604 dated 25.08.2015.

4. Please acknowledge receipt.

5. Hindi version is enclosed.

(Sonali Chaturvedi)
Dy. Dir. Finance (Estt.)II
Railway Board.

Source : NFIR

View order

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Denial of TA/DA to the Staff car Drivers in the Railways-reg

admin — Tue, 12 May 2015 10:28:35 +0000

Denial of TA/DA to the Staff car Drivers in the Railways-reg

NFIR
National Federationf Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

Affiliated to :
lndian NationalTrade Union Congress (INTUC)
International Transport Workers’ Federation (lTF)

No. I/8/Part. I

Dated: 11/05/2015

Sub: Denial of TA/DA to the Staff car Drivers in the Railways-reg.

Ref: (i) NFIR’s PNM ltem No.4/2011.
(ii) NFIR’s letter No. 1/8 dated 02/04/2010.
(iii) NFIR’s letter No. I/8/pt. I dated 27/06/2013. 13/09/2013, 5/5/2014, 7/7/2014 & 21/10/2014.

(iv) Railway Board’s letter No. F(E)I/209/AL-28/04/2015.

In the Fast Track Committee Meeting held in the Railway Board on 08/05/2015, the above subject was discussed without finality. However, NFIR places below detailed justification warranting restoration of payment of TA/DA to the Staff Car Drivers:-

1. The Committee constituted by the Railway Board appears to have not recommended payment of Daily Allowance to the Staff Car Drivers for performing official journeys during the prescribed duty hours even if they move out beyond a distance of 8 kms. from the Head Quarters without consulting extant codal provision.

2. The Sub Rule (1) of Rule 1614 o.f lndian Railway Establishment Code (Second Reprint Edition) permits drawal of daily allowance by a Railway employee who is not receiving a permanent allowance on any day on which he proceeds on tour beyond a radius of 8 krns.

The position mentioned above shows that the decision taken by the Railway Board is contrary to the instructions/codal provisions, the same requires to be reviewed. It needs to te appreciated that the staff car drivers carry the officials to accident sites, flood affected areas, and different locations in view of administrative requirement. Their working is not comparable with other departments of central Government. Denial of TA/DA is therefore unjustified.

NFIR, therefore, urges the Railway Board to withdraw Board’s letter dated 12/03/2008 and issue instructions to the General Managers of Zones/PUs for restoration of payment of TA/DA to Staff Car Drivers undertaking journeys a beyond a distance of 8 kms. A copy of the instructions issued may be endorsed to the Federation.

Yours faithfully,
(Dr. M. Raghavaiah)
General Secretary

Copy to the Executive Director F(E), Railway Board, New Delhi for information and necessary action.
Copy to the Convener, Fast Track Committee & Executive Director/IR, Railway Board, New Delhi for information and necessary action.
Copy to General Secretaries of Affiliate Unions of NFIR.
Media Centre/NFIR.
File No. 4/2011 (PNM),
File No IV/NFIR/ETC/2014 (MAIN)

Source: NFIR

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26th meeting of SCOVA to be held on 3rd February, 2015

admin — Mon, 05 Jan 2015 02:42:54 +0000

26th meeting of SCOVA to be held on 3rd February, 2015

26th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Hon’ble MOS (PP) to be held on 03rd February, 2015 in New Delhi: Pensioners Portal Order

SCOVA Meeting
F. No. 42/39/2014-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New’Delhi – 110003
Date: Dec, 2014

To,

Subject: 26th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Hon’ble MOS (PP) to be held on 03rd February, 2015 in New Delhi.

Sir/Madam,
In continuation to this Department’s OM of even no dated 24th Nov, 2014 regarding holding of the 26th meeting of Standing Committee of Voluntary Agencies(SCOVA) under the Chairmanship of Hon’ble MOS(PP), the date and time of the meeting is indicated below:

Date:- 03rd February,2015

Time:- 11.00 AM.

2. The Venue of the meeting will soon be intimated. Because of the consideration of space, only one representative may attend the above said meeting. It is requested that the name of the member nominated for the meeting may kindly be sent to this Department to the undersigned through fax/email (Fax/Email address given below) and also in the hard copy.

3. Only one outstation member will be paid TA/DA and charges local members will be paid conveyance charges in accordance with the rules/instructions. Outstation members will be paid TA/DA as per their last entitlement on retirement. Therefore, members are requested to bring copy of PPO for determining the entitlement of TA/DA claims. However, outstation members arriving from a station more than 1000 kms are entitled to get reimbursement for travel as per this Department’s letter no F.No 42/11/2014-P&PW(G) dated 19th May, 2014

4. This Department looks forward to your participation in the meeting.

Yours faithfully
sd/-
(Sujasha Choudhury
Dy. Secretary (P)
Telephone : 24635979

Source: http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/SCOVA_311214.pdf

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Grant of HRA/Transport Allowance at enhanced rates to the Central Government employees as per Census 2011 – regarding.

admin — Fri, 15 Aug 2014 14:11:40 +0000

Finance Ministry’s reply to Confederation Secretary General regarding grant of HRA/TA as per Census 2011

2011-CENSUS – RECLASSIFICATION OF CITIES/TOWNS GRANT OF HIGHER RATE OF HRA/TRANSPORT ALLOWANCE FINANCE MINISTRY’S REPLY TO SECRETARY GENERAL CONFEDERATION

No.9(10)/2012-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, 30th July 2014

To
The Secretary General,
(Shri.M.Krishnan)
Confederation of Central Govt. Employees & Workers,
1st Floor, North Avenue PO Building,
New Delhi – 110001.

Subject: Grant of HRA/Transport Allowance at enhanced rates to the Central Government employees as per Census 2011 – regarding.

Sir,
I am directed to refer to your letter Ref. No.Confdn./GENL/2014 dated 28.04.2014 on the above mentioned subject and to say that consequent on the Office of the Registrar General & Census Commissioner publishing the Report of Census-2011, action for re-classification of cities/towns based on Census-2011 for the purpose of grant of HRA / Transport Allowance to Central Government Employees, has already been initiated in this Department.

2. However, completion of the process is likely to take time.

Yours faithfully,
sd/-
(A.Bhattacharya)
Under Secretary to the Government of India

Source: http://confederationhq.blogspot.in/

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Committee to formulate a comprehensive transfer policy: Railway Board Order

admin — Fri, 27 Jun 2014 10:01:09 +0000

Constitution a Committee of Officers representing each stream under the Chairmanship of Member Staff with Secretary to Board as co-Chairman to formulate a Comprehensive transfer policy starting from the lowest level up to various posts in Board.

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

No. ERB-I/2014/23/27

New Delhi, dated 26.6.2014

ORDER

Ministry of Railways (Railway Board) have decided to constitute a Committee of officers representing each stream under the Chairmanship of Member Staff with Secretary to Board as co-Chairman to formulate a Comprehensive transfer policy starting from the lowest level up to various posts in Board. The Committee will consist of the following Members:-

i) Director General (RHS), Railway Board
ii) Director General (RPF), Railway Board
ill) Addl. Member (Traffic), Railway Board
iv) Addl. Member (PU), Railway Board
v) Addl. Member (L), Railway Board

vi) Addl. Member (CE), Railway Board
vii) Addl. Member (Signal), Railway Board
viii) Addl. Member (Budget), Railway Board
ix) Addl. Member (Planning), Railway Board
x) Addl. Member/Staff (now Adviser/Staff), Railway Board
xi) Adviser (Stores), Railway Board

2. The Terms of reference of the Committee will be as under:-

i) Comprehensive transfer policy to be formulated;
ii) Minimum tenure and maximum period for each level be defined;
iii) Maximum number of years an officer can stay in one location/city;
iv) Rotation of officer to various Zones in Railways to have Pan-India exposure;
v) Compulsory shifting after maximum period of stay;
vi) Prescribing minimum number of experience in divisions for posting as DRM and minimum experience in number of Zones for GM posts as well as posts in Railway Board;
vii) Examining the possibility of not posting the officer to the native divisions, if desired not to be posted to native zones;
viii) Streamlining the feeder cadre for each level of promotion and cadre management;
ix) Any other references to be made by Chairman and Members of the Board; and
x) Any references to be made by Minister of State for Railways and Minister for Railways.

3. The Headquarter of the Committee will be at New Delhi.

4. The Chairman, Co-Chairman and Members of the Committee will be eligible to draw TA/DA, as per extant rules.

sd/-
(K. Krishnan)
Joint Secretary
Railway Board

Source: http://www.indianrailways.gov.in/railwayboard/uploads/irpersonel/Promotion_Posting/ERB-1/Committee_260614.PDF

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Engagement of Consultant under the Plan Scheme ‘Pensioners Portal’.

admin — Tue, 24 Jun 2014 02:37:49 +0000

Engagement of Consultant under the Plan Scheme ‘Pensioners Portal’.

No. 44011/2/2013-Admn.I
Government of India
Ministry of Personnel PG & Pension
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated: 17th June, 2014

ADVERTISEMENT FOR ENGAGEMENT AS CONSULTANT

Subject: Engagement of Consultant under the Plan Scheme ‘Pensioners Portal’.

This Department has been implementing a Plan Scheme namely ‘Pensioners’ Portal’ – A Mission Mode Project under NeGP, Government of India.

It is proposed to engage one Consultant at Under Secretary level to assist the Department in undertaking various activities under the Pensioners Portal. The consultancy fee payable to the Consultant so selected is likely to be lump-sum monthly remuneration to be fixed based on pay last drawn under the Government minus pension plus DA (fixed). The present approved tenure of the Consultant may be up to 25th February, 2015. The Consultant so appointed may also be required to undertake tours for outstation activities for which he/she will be paid TA/DA as per Rules.

Retired Under Secretaries/equivalent having worked in social welfare schemes of Ministries/ Departments would be desirable. The retired Govt. servants having recently retired from the post equivalent to that of Under Secretary and desirous of being considered may send their bio-data in the enclosed application form so as to reach the undersigned latest by 24th June, 2014 at the email address tripti.ghosh@nic.in. They may also report for interview in room No.320, 3rd Floor, Lok Nayak Bhawan, Khan Market, New Delhi on 26th June, 2014 at 3.00 P.M. The person selected for the above position will be required to join immediately.

Sd/-
(Tripti. P. Ghosh)
Director (PP)

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/Admin1_180614.pdf

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24th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honible MOS (PP) to be held on 5th February , 2014 in New Delhi.

admin — Fri, 17 Jan 2014 14:45:17 +0000

24th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honible MOS (PP) to be held on 5th February , 2014 in New Delhi.

F. No. 42/2/2014-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 10th Jan 2014

To,
All the Pensioners Associations under present SCOVA

Subject : 24th meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honible MOS (PP) to be held on 5th February , 2014 in New Delhi.

– Intimation regarding DATE and TIME.
Sir,
In continuation to this Department’s OM of even no dated 1st Jan,2014 regarding holding of the 24th meeting of Standing Committee of Voluntary Agencies(SCOVA) under the Chairmanship of Hon’ble MOS(PP), the date and time of the meeting is indicated below:

Date:- 5th February, 2014

Time:- 4.00 PM.

2. The Venue of the meeting will soon be intimated. Because of the consideration of space, only one representative may attend the above said meeting.

3. Only one outstation member will be paid TA/DA and local members will be paid conveyance charges in accordance with the rules/instructions. Outstation members will be paid TA/DA as per their last entitlement on retirement. Therefore, members are requested to bring copy of PPO for determining the entitlement of TA/DA claims.

4. This Department looks forward to you participation in the meeting.

Yours faithfully,

(Sujasha Choudhury)
Dy. Secretary (P) Telephone

Source: www.govtempdiary.com
[http://www.govtempdiary.com/2014/01/24th-meeting-of-the-standing-committee-of-voluntary-agencies-held-on-scova5th-february-2014/]

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