Income Tax - Allowances of UPSC Members Exempted

By Vijay Kumar

SECTION 10 of the Income Tax Act, which excludes certain incomes from total income, has 47 clauses.

Clause 45 inserted by Finance Act 2011 with retrospective effect from 01.04.2008, reads as,

“ any allowance or perquisite, as may be notified by the Central Government in the Official Gazette in this behalf, paid to the Chairman or a retired Chairman or any other member or retired member of the Union Public Service Commission.”

Now the Government has notified the allowances eligible for the exemption.

The exempted allowances for the serving Chairman and members of the UPSC are:

++ The value of rent free official residence;

++ The value of conveyance facilities including transport allowance;

++ The sumptuary allowance;

++ The value of leave travel concession (for self and family)

For retired Chairman and members:

++ A sum of maximum Rs. 14,000 per month for defraying the service of an orderly and for meeting expenses incurred towards secretarial assistance on contract basis;

++ The value of a residential telephone free of cost and the number of free calls to the extent of 1500 per month (over and above the number of free calls per month allowed by the telephone authorities).

NOTIFICATION NO. 49/2011 [F.NO. 149/113/2008-SO (TPL)]; Dated September 06, 2011