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Automatic Income Tax Master of Form 16 Part B for F.Y.2016-17 + Taxable and Non-taxable Pay and Allowances for F.Y.2016-17

Download Automated Income Tax Master of Form 16 Part B for F.Y.2016-17.[ This Excel Utility can prepare at a time 50 Employees Form 16 Part B as per amended latest Income Tax Section for F.Y.2016-17]


Taxable and Non-taxable Pay and Allowances – Principal Controller of Defense Accounts has issued classification of Pay and allowances
Taxable and Non-taxable Element of Pay and allowances issued by Principal Controller of Defence Accounts (Officers) Ministry of Defence
Government of India
The table of Taxable & Non-Taxable Element of Pay as per Income Tax Act. Provisions are applicable equally to a monthly payment of Allowances as well as arrears for the said head of Pay/ Allowances:-
1. Taxable Element of Pay –
Sl. No.
Taxable Elements of Pay
1.
Pay in the Pay Band
2.
Grade Pay
3.
Military Service Pay
4.
Dearness Allowance
5.
Non-Practicing Allowance (if any)
6.
Hazard/Special Hazard Pay
7.
Para Allowance/Para Reserve Allowance/Special Commando Allowance
8.
City Compensatory Allowance
9.
Deputation (Duty) Allowance (If any)
10.
Reimbursement of Furniture
11.
Reimbursement of Water
12.
Reimbursement of Electricity
13.
Technical Allowance
14.
Qualification Pay
15.
Special Action Group Allowance (on posting to
National Security Guard)
16.
Technical Pay
17.
Language Allowance
18.
Qualification Grant
19.
Language Award
20.
Flying Allowance
21.
Leave Encashment on LTC
22.
Specialist Allowance
23.
Test Pilot Allowance
24.
Instructor Allowance
25.
Flight Test Allowance
26.
Security Allowance
27.
Strategic Force Allowance
. Non-Taxable Elements of Pay –
Sl No.
Non-Taxable element of Pay
Authority
Limit of Exemption
1.
Gallantary Award
A.O. 46/79; U/S 10 (18) (i) of IT Acts w.e.f. 1947
Fully Exempt
2.
Entertainment Allowance
U/S 16 (ii) of IT Act w.e.f. 01/04/81
A sums equal to 1/5th of salary (excluding any allowance/benefit) or Rs.5000/- per annum whichever is less.
3.
Leave Travel Concession (LTC)
U/S 10 (5) of IT Act w.e.f. 01/04/89
Actual Expenditure up to the limit of entitlement
4.
Foreign Allowance
U/S 10 (7) of IT Act
Fully Exempt
5.
Bhutan Compensatory Allowance (BCA)
AO 395/74 and U/S 10 (7) of IT Act
Fully Exempt
6.
Servant Wages Allowance along with BCA
AO 395/74 and U/S 10 (7) of IT Act
Fully Exempt
7.
Purchase of Crockery/Cutlery/ Glassware
U/S 10 (7) of IT Act
Fully Exempt
8.
Outfit allowance on posting to Embassy
U/S 10 (7) of IT Act
Fully Exempt
9.
Arrears of Cash Grant – Foreign Allowance (Nepal)
U/S 10 (7) of IT Act
Fully Exempt
10.
Myanmar Allowance
U/S 10 (7) of
Fully Exempt
11.
Representation Grant for use of crockery set
U/S 10 (7) of Act
Fully Exempt
12.
Encashment of Leave on retirement whether on superannuation/voluntary retirement/release/invalided etc.
U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78
Fully Exempt
13.
House Rent Allowance/House Rent Reimbursement (HRA/HRR)
U/S 10 (13A) of IT Act w.e.f. 06/10/1964; Limit of exemption as per Rule 2A of IT Rules
*Quantum of exemption is least of the following –
a) For Bombay/Kolkata/ Delhi-Chennai
i) Allowance actually received.
ii) Rent paid in excess of 10% of salary
iii) 50% of salary
b) For other cities
i) Allowance actually received.
ii) Rent paid in excess of 10% of salary.
iii) 40% of salary
14.
Children Education Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.5 of the IT Rules
Rs.100/- per month per child up to a maximum of 2 children.
15.
Hostel Subsidy
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.6 of the IT Rules
Rs.300/- per month per child up to a maximum of 2 children
16.
Siachen Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.1 (II) of the IT Rules
Rs.7000/ per month w.e.f. 01/08/1997
17.
Special Compensatory (Remote Locality) Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.2 of the IT Rules
Category I – SCA ‘A’ – Rs.1300/- per month
Category III – SCA ‘B’– Rs.1050/- per month.
Category IV – SCA ‘C’– Rs.750/- per month.
Category VI – SCA ‘D’ – Rs.200/- per month.
18.
Compensatory Field Area Allowance (CFAA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.7 of the IT Rules
Rs.2600/- per month w.e.f. 01/05/1999
19.
Compensatory Modified Field Area Allowance (CMFAA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.8 of the IT Rules
Rs.1000/- per month w.e.f. 01/05/1999
20.
Any Special Allowance in the nature of Counter Insurgency Allowance (SCCIA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.9 of the IT Rules
Rs.3900/- per month w.e.f. 01/05/1999
21.
Transport Allowance granted to
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the IT Rules
For whole of India – Rs.1600/- per month
22.
Transport Allowance granted to a blind or orthopedically handicapped employee with disability of lower extremities, to meet expenditure for the purpose of commuting between place of residence and duty
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.11 of the IT Rules
For Whole of India – Rs.3200/- per month
23.
High Altitude Uncongenial Climate Allowance (HAUCA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table Sl.No.13 of the IT Rules
For areas of
(a) Altitude of 9000 to 15000 feet (HAUCA ‘I) – Rs.1060/- per month w.e.f. 01/05/1999.
(b) Altitude above 15000 feet (HAUCA ‘II’ & ‘III) – Rs.1600/- per month w.e.f. 01/05/1999.
24.
Highly Active Field Area Allowance (HAFA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.14 of the IT Rules
Rs.4200/- per month
25.
Island (duty) Allowance granted to the members of Armed Forces
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.15 of the IT Rules.
For Andaman & Nicobar and Lakshadweep group of islands – Rs.3250/- per month inserted w.e.f. 29/02/2000.
26.
Outfit Allowance (Initial/Renewal)
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of IT Rules.
Fully Exempt
27.
Compensation for the change of uniform
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
Fully Exempt
28.
Kit Maintenance Allowance
U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of the IT Rules
Fully Exempt
29.
Uniform Allowance (MNS)
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
Fully Exempt
30.
Special Winter Uniform
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
Fully Exempt
31.
Reimbursement of Medical Expenses
U/S 17 (2) (viii) (v) of IT Act
Actual expenditure up to Rs.15000/- per annum.
32.
Any payment from Provident Fund
U/S 10 (11) of IT Act
Fully Exempt
33.
Payment of Compensation – Disability Pension
CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001
Fully Exempt.

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