List of exempt income from income tax, including various allowances for defense personnel

Indian Military Veterans

List of exempt income from income tax, including various allowances for defense personnel

Filing income tax returns is important for citizens, including civil servants, military personnel, and veterans. This article provides a comprehensive list of allowances and salary elements that are fully or partially exempt from income tax.

Tax exemptions for the following salaries and allowances

Ser No	Type of Pay or Allowance	Authority for Exemption	Exemption  Limit
No
14.	Children Edn Alice	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 5 of the IT Rules	Rs 100/- per month per child upto a max of 2 children.
15.	Hostel Subsidy	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 6 of the IT Rules	Rs 300/- per month per child upto a max of 2 children.
16.	Siachen Alice	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 1 (II) of the IT Rules	Rs 7000/- per month wef 01 Aug 1997
17.	Spl Compensatory (Remote Locality) Alice	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 2 of the IT Rules	Cat I — SCA ‘A’ — Rs 1300/- per month Cat III — SCA ‘B’ — Rs 1050/- per month Cat IV — SCA ‘C’ — Rs 750/- per month Cat VI — SCA ‘D’ — Rs 200/- per month
18.	Compensatory      Field             Area Alice (CFAA)	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 7 of the IT Rules	Rs 2600/- per month wef 01 May 1999
19.	Compensatory Mod Fd Area Alice (CMFAA)	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 8 of the IT Rules	Rs 1000/- per month wef 01 May 1999
20.	Any Spl Alice in the nature of Counter Insurgency Alice (SCCIA)	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 9 of the IT Rules	Rs 3900/- per month wef 01 May 1999
21.	Tpt Alice gtd to meet expdr for the purpose of commuting between place of residence and duty	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 10 of the IT Rules	For whole of India — Rs 1600/-per month
22.	Tpt Alice gtd to a blind or orthopedically handicapped emp with disability of lower extremities, to meet expdr for the purpose of commuting between place of residence and duty	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 11 of the IT Rules	For whole of India — Rs 3200/-per month
23.	High                       Altitude      Uncongenial Climate Alice (HAUCA) Pay	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 13 of the IT Rules	For area of Altitude of 9000 to 15000 ft (HAUCA ‘I’) — Rs 1060/- per month wef 01 May 1999.Altitude above 15000/- ft (HAUCA ‘II’ & ‘III’) Rs 1600/- per month wef 01 May 1999.

Ser No	Non-taxable    element        of	Auth	Limit of Exemption
24.	Highly Active Fd Area Alice (HAF)	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 14 of the IT Rules	Rs 4200/- per month
25.	Island (duty) Alice gtd to the members of Armed Forces	U/S 10 (14) (ii) of IT Act and Rule 2BB (2) — Table Ser No 15 of the IT Rules	For Andaman & Nicobar and Lakshadweep group of Islands — Rs 3250/- per month inserted wef 29 Feb 2000
26.	Outfit                  Alice          (Initial           / Renewal)	U/S 10 (14) (i) of IT Act and Rule 2BB 1 (f) of the IT Rules	Fully Exempt
27.	Compensation          for      the change of uniform	U/S 10 (14) (i) of IT Act and Rule 2BB 1 (f) of the IT Rules	Fully Exempt
28.	Kit Maint Alice	U/S 10 (14) (i) of IT Act and Rule 2BB 1 (f) of the IT Rules	Fully Exempt
29.	Uniform Alice (MNS)	U/S 10 (14) (i) of IT Act and Rule 2BB 1 (f) of the IT Rules	Fully Exempt
30.	Spl Winter Uniform Alice	U/S 10 (14) (i) of IT Act and Rule 2BB 1 (f) of the IT Rules	Fully Exempt
31.	Reimbursement of Medical Expenses	U/S 17 (2) (viii) (v) of IT Act	Actual       expdr       upto           Rs 15000/- per annum
32.	Any payment from provident Fund	U/S 10 (11) of IT Act	Fully Exempt
33.	Payment of Compensation — Disability Pension	CBDT F No 200/51/99-ITA 1 dt 02 Jul 2001	Fully Exempt