Military service pay is taxable or non taxable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2014 Plz tell me, military service pay(MSP) is taxable or non taxable for a defence personal, if it is nontaxable plz tell according to which section and rule, or any authority, plz help me.

CA Syed Raza Abbas Rizvi

CA Syed Raza Abbas Rizvi (Expert)
Follow

27 August 2014 Allowances which are taxable

Due to the special nature of duties of the armed forces, certain allowances are paid to meet that requirement. Of these allowances some are subject to tax and some are not. The ones falling under the tax purview are Military Service Pay, Grade Pay, Classification Allowance Group Pay, Composite Personal Maintenance Allowance, Good Conduct / Service Badge Pay, House Rent Allowance, Language allowances, Instructional Duty Allowances , Officiating Allowances, Para /Flying Allowances/Submarine Allowances, special Forces allowance, Sea Duty Allowance etc. Other normal allowances like Dearness Allowance, Transportation Allowance (limit) are all taxed at the rates according to the respective Income Tax slab of PBOR.

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2014 Its means ,msp is taxable income.but sir I hv taken exemption on msp last year and get refund.it will create any problem in future.