Composite transfer grant

The Composite Transfer Grant (CTG) received by Central Government employees is exempt from income tax.

Exemption under Section 10(14) of the Income-tax Act, 1961 The exemption is provided under Section 10(14) of the Income-tax Act, 1961, read with Rule 2BB of the Income-tax Rules, 1962.

 Conditions for Exemption To qualify for exemption, the following conditions must be met:

1. The transfer grant must be received by a Central Government employee.

2. The grant must be received in connection with the employee's transfer from one station to another.

3. The grant must not exceed the actual expenditure incurred by the employee. Circulars and Notifications The exemption is also clarified in various circulars and notifications issued by the Central Board of Direct Taxes (CBDT), including: -

Circular No. 10/2008, dated 22.09.2008 - Notification No. 11/2010, dated 23.02.2010 Please consult the relevant provisions of the Income-tax Act, 1961, and the Income-tax Rules, 1962, or seek professional advice to ensure accurate interpretation and application of the exemption.

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