7th Pay Commission: Big News on Allowance and Exemption from Income Tax

New Delhi: In a good news for the Jawans of paramilitary forces, the finance ministry has reportedly given an assurance to the home ministry that it would consider the demand to exempt ration money allowance and risk and hardship allowance granted to these forces from the purview of income tax.

According to PTI, if it is implemented, about nine lakh personnel of paramilitary forces like CRPF, BSF, CISF, ITBP and SSB, will be benefitted.

In a recent letter to the home ministry, the finance ministry conveyed that the long-standing demand of forces would be examined during the ensuring budgetary exercise, PTI reported citing a home ministry official.

This was reportedly in response to a communication from the home ministry which raised the issue of tax exemption on ration money allowance given to paramilitary personnel on the basis of parity with other uniformed forces and Pay Commission recommendations.

Personnel of paramilitary forces up to non-gazetted ranks such as constable, head constable, assistant sub inspector, sub inspector and inspector are entitled to an RMA of Rs 3,000 per month.

The 7th Central Pay Commission in its report has recommended that looking into the unique service conditions of paramilitary personnel and since RMA is granted in lieu of free ration, it should be exempt from income tax.