rebate on risk and hardship allowance payable to force personnel

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This query is : Resolved

Mahender Singh (Querist)

13 January 2017 Sir, Jai hind kindly clarify up to which amount risk and hardship allowance is exempt from income tax under section 10. regards

Mahender Singh

Mahender Singh (Querist)

16 January 2017 Risk hardship allowances means allowances admissible to troops of defence forces deployed on L O C & naxalite operations

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

20 July 2025 Jai Hind! 🇮🇳

Regarding Risk and Hardship Allowance payable to defence personnel or forces deployed in difficult areas like the LoC or naxalite-affected regions:

Tax Treatment under Section 10 of the Income Tax Act:
Risk and hardship allowance is fully exempt from income tax when paid to armed forces personnel deployed in specified areas (like LoC, counter-insurgency, naxalite zones).
There is no upper limit or monetary cap mentioned explicitly in the Income Tax Act for this exemption.
The exemption applies to the allowance granted specifically for risk, hardship, and special conditions of service as notified by the government.
Important points:
The allowance must be specifically classified as risk or hardship allowance.
It should be paid in respect of service in specified hazardous or difficult areas.
This exemption is distinct from other types of allowances and benefits.

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