Taxability of allowances received by mla.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2013 MLA or State Ministers are in receipt of daily sitting allowance which is exempt. They are also in receipt of traveling, telephone and other allowances, on some head expenses incurred or more and on other expenses incurred are less than the receipts, under the circumstances whether receipt is fully exempt u/s. 10(17) or surplus is taxable under the provision of income Tax Act?
Kindly advice. Thanks.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

25 August 2013 All payments to MLA are covered under the provisions of exemption taken by way of remuneration. In case of excess or short then those to be adjusted and they cannot take more than the actual if they have taken more than the actual then that is to be treated as income but if it comes to the notice of the concerned department then they have to refund on one side and pay tax on the other side.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2013 For traveling and conveyance details of expenses are not maintained, what will be treatment under I Tax?

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