New Delhi Central armed paramilitary may get tax exemption on ration money allowance and and risk and hardship allowance, officials in the Union home ministry said on Wednesday. The move is likely to benefit over 9 lakh personnel of paramilitary forces — CRPF, BSF, CISF, ITBP and SSB.
In a letter to the home ministry, the finance ministry indicated that the demand of the central police forces would be examined during the ensuring budgetary exercise.
This was 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 defence forces, Assam Rifles and NSG are given free ration while personnel of CRPF, BSF, CISF, ITBP and SSB are granted ration money allowance.
Personnel of paramilitary forces up to non-gazetted ranks such as constable, head constable, assistant sub inspector, sub inspector and inspector get ration allowance of Rs 3,000 per month.
In its report, the 7th Central Pay Commission 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.
The home ministry in its letter to the finance ministry also raised the issue of exemption of risk and hardship allowance of paramilitary personnel from income tax, the officials said.
Quantum of risk and hardship allowance varies from Rs 6,000 to Rs 25,000 per month per head, depending on various factors. |