Snjpc allowance received by judges

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This discussion addresses the tax treatment of substantial allowances received by judges, such as rent-free accommodation, conveyance, and sumptuary allowances. While these are generally exempt under Section 10 of the Income-tax Act, 1961, the specific subsections for each allowance are crucial for accurate ITR filing. The query highlights a common issue where these allowances are included in gross salary and taxed, leading to a need for rectification and potential refunds. Advice includes showing exempt allowances under the exempt income schedule and potentially revising TDS returns with the paying authority.

Nutan Mali

Nutan Mali (Querist)
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13 July 2024 i have query regarding allowance received by judges during year end feb 2024. Now my few clients are judges I Could not understand where to show this allowances because it is huge amount like 27 lakh or 30lakhs for each judge.

in form 16 they simply added it in gross salary and deducted tax on it. Now judges are insisting that they want refund because all allowance are exempt

under section 10 is ok but sub section is also required please help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 July 2024 Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961),—
(a) the value of rent-free official residence provided to a Judge under sub-section (1) of section 22A or the allowance paid to him under sub-section (2) of that section;
(b) the value of the conveyance facilities provided to a Judge under section 22B;
(c) the sumptuary allowance provided to a Judge under section 22C;
(d) the value of leave travel concession provided to a judge and members of his family,
shall not be included in the computation of his income chargeable under the head “Salaries” under section 15 of the Income- tax Act 1961 (43 of 1961).

Nutan Mali

Nutan Mali (Querist)
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15 July 2024 They have already included in salary at the time of payment and shown in total amount included allowance in gross deducted 34% tax. Now how to rectify in itr

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 July 2024 Show exempt allowance under exempt income schedule and file ITR.

Nutan Mali

Nutan Mali (Querist)
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15 July 2024 yes I have exempt sumptuary allowance every year . But now it includes mobile handset and domestic helper magzine allowance . furniture allowance I know that these allowance are exempt under section 10.But I want to know exact sub section like 10(14) or 10(35) etc

GROSS SALARY U/S 17(1) IS 45 LAKH IN FORM 16

BUT THEY DID NOT SHOW ALLOWANCE INCLUDED IN THIS 45 LAKH
SUMPTUARY ALLOWANCE 542000
NEWS PAPER ALLOWANCE 145000
DOMESSTIC ALLOWANCE 245000
MOBILE HANDSEST ALLOWANCE 134000

MY PROBLEM IS I HAVE TO DEDUCT THIS FROM GROSS SALARY AND SHOWN IN RESPECTIVE SECTION THEN ONLY IT WILL GIVE CORRECTED FIGURE OF NET INCOME

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 July 2024 Only sumtuary allowance is exempt.
Contact salary paying authority to revise TDS return.

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