Nursing allowances come under any exception or not

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:

✅ 1. Nursing Allowance – Is it Exempt from Tax?

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.

❌ 2. Is it an Exception (Exempt) under Any Government Order?

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.

Summary: