InvestorQ : Is the Union Finance Ministry, Arun Jaitley set to grant tax exemption to soldiers of the Indian army?
Roshni Hegde made post

Is the Union Finance Ministry, Arun Jaitley set to grant tax exemption to soldiers of the Indian army?

Answer
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krithika Saxena answered.
1 year ago


New tax relief to all Indian soldiers was proposed by the Home Ministry to the Union Finance Ministry. It is all set to get approved now. This tax exemption is to personnel of paramilitary forces on the risk-hardship allowance and ration money allowance.

Military special pay (MSP) gives tax allowance to soldiers of the Indian Army.
This implication is aimed to benefit more than 9 lakh Central Armed Police Forces (CAPF) personnel from CRPF, BSF, CISF, ITBP, SSB, and their families. This tax exemption includes ration money allowance and risk and hardship allowance granted to paramilitary personnel.

To take benefit of monthly ration allowance of Rs 3,000 the individual must be Paramilitary personnel. Here Paramilitary personnel entitles only non-gazetted ranks such as constable, head constable, assistant sub-inspector, sub-inspector, and inspector.
However, due to this move of tax exemption government has bear some cost.

As per the provisions of Govt. of India, Ministry of Defence dt. 31st July 2017, ''Ration Money Allowance is a type of allowance that will be admitted by PCDA(O) by Direct Benefit Transfer (DBT) through individual bank accounts. Amount of Ration Money will be remitted along with the salary and reflected in Pay Slip as ‘Ration Money Allowance” (pcdaopune.gov.in)