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Tds relief ration allowances for defence personnel

Pranab Banerjee (Software Maker & Income Tax Practisioner) (6542 Points)

14 December 2011

Ration Allowances, Kit Allowances, which allowances allowed to the Defence or Police Personnel in each month, can relief in Income Tax Act ? if Yes which section should be made.

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Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 14 December 2011

Dear Mr. Pranab Banerjee

I hope your query is in relation to Special Allowances notified U/s.10(14) of the I.T. Act. Thus here I'am quoting the names of the allowances.

The following allowances are prescribed by the CBDT under Rule 2BB of the Income-tax rules as exempt to the extent spent or specified here below:

Sl. No.	Name of allowance/places where exempt	Extent of exemption
(i)	Any special compensatory allowance in the nature of *Special Compensatory (Hilly Areas) Allowance or High Altitude Allowance or Uncongenial Climate Allowance or Snow Bound Area Allowance or Avalanche Allowance—
	(i) At places mentioned under Item I in Col. 3 of Sl. No. 1 of the Table in rule 2BB(2)		Rs. 800* per month
	(ii) Siachen area of Jammu and Kashmir		Rs. 7,000* per month
	(iii) All other places situated at a height of 1,000 metres or more above sea level		Rs. 300* per month

(ii)	*Any special compensatory allowance in the nature of Border Area Allowance or Remote locality allowance or Difficult Area Allowance or Disturbed Area Allowance—
	(a) At places mentioned under Item I in Col. 3 of Sl. No. 2 of the Table in rule 2BB(2)		Rs. 1,300* per month
	(b) Installations in the Continental Shelf of India and the Exclusive Economic Zone of India		Rs. 1,100 per month
	(c) At places mentioned in Item III in Col. 3 of Sl. No. 2 of the Table in rule 2BB(2)		Rs. 1,050* per month
	(d) At places mentioned in Item IV in Col. 3 of Sl. No. 2 of the Table in rule 2BB(2)		Rs. 750* per month
	(e) Jog Falls in Shimoga District in Karnataka		Rs. 300 per month
	(f) At places mentioned in Item VI in Col. 3 of Sl. No. 2 of the Table in rule 2BB(2)		Rs. 200* per month
(iii)	*Special Compensatory (Tribal Areas/Schedule Areas/Agency Areas) Allowance in States mentioned in Col. 3 of Sl. No. 3 of Table in rule 2BB(2)		Rs. 200* per month
(iv)	Any allowance granted to an employee working in any transport system to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place, provided that such employee is not in receipt of daily allowance (whole of India)		70 per cent of such allowance upto a maximum of Rs. 6,000* per month
(v)	Children Educational Allowance (whole of India)		Rs. 100* per month per child upto a maximum of two children
(vi)	Any allowance granted to an employee to meet the hostel expenditure on his child (whole of India)		Rs. 300* per month per child, upto a maximum of two children
(vii)	Compensatory Field Area Allowance, at places mentioned in Col. 3 of Sl. No. 7 of Table in rule 2BB(2)		Rs. 2,600† per month
(viii)	Compensatory Modified Field Area Allowance at places mentioned in Col. 3 of Sl. No. 8 of Table in rule 2BB(2)		Rs. 1,000* per month
(ix)	Any special allowance in the nature of counter insurgency allowance granted to the members of the armed forces operating in areas away from their permanent locations for a period of more than 30 days (whole of India)		Rs. 3,900* per month
(x)	Transport allowance granted to an employee [other than an employee referred to in (xi)] to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty (whole of India)		Rs. 800† per month
(xi)	†Transport allowance granted to an employee, who is blind or orthopaedically handicapped with disability of lower extremities, to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty (whole of India)		Rs. 1,600† per month
(xii)	Underground allowance granted to an employee who is working in uncongenial, unnatural climate in under- ground coal mines (whole of India).		Rs. 800‡ per month
(xiii)	Any special allowance in the nature of high altitude (uncongenial climate) allowance granted to the member of the armed forces operating in high altitude areas
	(a) For altitude of 9,000 to 15,000 feet		Rs. 1,060 per month
	(b) For altitude above 15,000 feet		Rs. 1,600 per month

(xiv)	Any special allowance granted to the members of the armed forces in the nature of special compensatory highly active field area allowance (whole of India)		Rs. 4,200 per month
(xv)	Any special allowance granted to the member of the armed forces in the nature of island (duty) allowance (Andaman & Nicobar and Lakshadweep Group of Islands)		Rs. 3,250 per month

Note : An assessee who claims exemption under (vii) and (viii) above, will not be entitled to the exemption in respect of the allowance referred to at (ii).

An assessee who claims exemption under (ix) will not be entitled to the exemption in respect of the allowance referred to at (ii) (disturbed area allowance).