18 July 2025
Yes, the Sea Going Allowance (also referred to as Compensatory Allowance for Risk and Hardships while deployed at sea) for Indian Armed Forces defence personnel (Indian Navy) is exempt from income tax in India. This exemption falls under Section 10(14)(ii) of the Income Tax Act read with Rule 2BB(2) of the Income Tax Rules, which covers various special allowances granted to armed forces personnel for duties in risky, uncongenial, or difficult conditions.