i am working AIIMS hospital as a senior nursing officer and we work with critical care patient ,in over salary we receive Nursing Allowance ,it will come in any exception or not ?
Nursing Allowance will not be treated as a part of pay as already decided Vide Ministry of Health and Family Welfare Oder No. Z28O1S/86/97_N dated 28n July. I998.
Thanks for your question, Pankaj.
You're asking whether the Nursing Allowance received by senior nursing officers (especially in critical care units like in AIIMS) comes under any exemption for income tax purposes — and whether it is treated as part of "pay" or not.
Let's break it down:
As per Income Tax laws in India, Nursing Allowance is generally taxable.
There is no specific exemption under Section 10 (which deals with allowances like HRA, transport, etc.) for Nursing Allowance.
Even though the Ministry of Health & Family Welfare (Order No. Z28015/86/97-N dated 28th July 1998) states that it is "not part of pay" for certain administrative or calculation purposes (e.g., pension, DA, etc.), this does not mean it is tax-exempt.
👉 So, for income tax purposes, Nursing Allowance is considered taxable income.
The MoHFW order you mentioned says it's not treated as part of "pay", but that is only for specific administrative calculations — not for income tax.
So, unless a new exemption notification is issued by the CBDT (Central Board of Direct Taxes), this allowance remains taxable.
| Aspect | Status |
|---|---|
| Taxable under Income Tax? | ✅ Yes, taxable |
| Exempt under any section (like HRA, etc.)? | ❌ No specific exemption |
| Part of "Pay" for DA/pension? | ❌ No (as per MoHFW order) |
| Part of "Income" for tax purposes? | ✅ Yes |
CAclubindia
