For the purpose of computing the income chargeable under the head “Salaries”, the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:—
72(1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below:
TABLE I
| Sl. No. | Circumstances | Where accommodation is unfurnished | Where accommodation is furnished |
| (1) | (2) | (3) | (4) |
| (1) | Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State. | License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee. | The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year. |
| (2) | Where the accommodation is provided by any other employer and— | | |
| | (a) where the accommodation is owned by the employer, or | (i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census; | The value of perquisites as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year. |
| | | (ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census; | |
| | | (iii) 7.5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee. | |
| (b) | where the accommodation is taken on lease or rent by the employer. | Actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee. | The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year. |
| (3) | Where the accommodation is provided by the employer specified in serial number (1) or (2) in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on his transfer from one place to another). | Not applicable. | 24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period during which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee: |
Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site—
(i) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometres away from the local limits of any municipality or a cantonment board; or
(ii) is located in a remote area:
Provided further that where on account of his transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value with reference to the Table above for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table.
Explanation.—For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with any body or undertaking under the control of such Government,—
(i) the employer of such an employee shall be deemed to be that body or undertaking where the employee is serving on deputation; and
(ii) the value of perquisite of such an accommodation shall be the amount calculated in accordance with Sl. No. (2)(a) of Table I, as if the accommodation is owned by the employer.
(2)(A) The value of perquisite by way of use of motor car to an employee by an employer shall be determined in accordance with the following Table, namely:—
TABLE II
VALUE OF PERQUISITE PER CALENDAR MONTH
| Sl. No. | Circumstances | Where cubic capacity of engine does not exceed 1.6 litres | Where cubic capacity of engine exceeds 1.6 litres |
| (1) | (2) | (3) | (4) |
| (1) | Where the motor car is owned or hired by the employer and— | | |
| | (a) is used wholly and exclusively in the performance of his official duties; | No value: | No value: |
| Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. | Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. | ||
| | (b) is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer; | Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use. | Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use. |
| | (c) is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and— | | |
| | (i) the expenses on maintenance and running are met or reimbursed by the employer; | Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car) | Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car) |
| | (ii) the expenses on running and maintenance for private or personal use are fully met by the assessee. | Rs. 600 (plus Rs. 900, if chauffeur is also provided by the employer to run the motor car) | Rs. 900 (plus Rs. 900, if chauffeur is also provided to run the motor car) |
| (2) | Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and— | | |
| | (i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes; | No value: | No value: |
| Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. | Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. | ||
| | (ii) such reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee or any member of his household. | Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above. | Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above. |
| (3) | Where the employee owns any other automotive conveyance but the actual running and maintenance charges are met or reimbursed to him by the employer and | | |
| | (i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes; | No value : | Not applicable : |
| Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. | | ||
| | (ii) such reimbursement is for the use of vehicle partly for official purposes and partly for personal or private purposes of the employee. | Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount of Rs. 900. | |
Provided that where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-car or all of any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value of perquisite shall be the amount calculated in respect of one car in accordance with Sl. No. (1)(c)(i) of Table II as if the employee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes and the amount calculated in respect of the other car or cars in accordance with Sl. No. (1)(b) of Table II as if he had been provided with such car exclusively for his private or personal purposes.
(B) Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in Sl. No. 2(ii) or 3(ii) of Table II, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount of charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vahicle provided that the following conditions are fulfilled :—
(a) the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon;
(b) the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.
Explanation.—For the purposes of this sub-rule, the normal wear and tear of a motor-car shall be taken at 10 per cent per annum of the actual cost of the motor-car or cars.
73(3) The value of benefit to the employee or any member of his household resulting from the provision by the employer or services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.
(4) The value of the benefit to the employee resulting from the supply of gas, electric energy or water for his household consumption shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water. Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer. Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.
74(5) The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institution is itself maintained and owned by the employer or where free educational facilities for such member of employees’ household are allowed in any other educational institution by reason of his being in employment of that employer, the value of the perquisite to the employee shall be determined with reference to the cost of such education in a similar institution in or near the locality. Where any amount is paid or recovered from the employee on that account, the value of benefit shall be reduced by the amount so paid or recovered :
Provided that where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, nothing contained in this sub-rule shall apply if the cost of such education or the value of such benefit per child does not exceed one thousand rupees per month.
(6) The value of any benefit or amenity resulting from the provision by an employer who is engaged in the carriage of passengers or goods, to any employee or to any member of his household for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods shall be taken to be the value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity :
Provided that nothing contained in this sub-rule shall apply to the employees of an airline or the railways.
(7) In terms of provisions contained in sub-clause (viii) of clause (2) of section 17, the following other benefits or amenities and value thereof shall be determined in the manner provided hereunder:
75(i) The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate 76charged per annum by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant previous year in respect of loans for the same purpose advanced by it on the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household:
Provided that no value would be charged if such loans are made available for medical treatment in respect of diseases specified in rule 3A of these Rules or where the amount of loans are petty not exceeding in the aggregate twenty thousand rupees:
Provided further that where the benefit relates to the loans made available for medical treatment referred to above, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.
(ii) The value of travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 2B of these rules, shall be determined as the sum equal to the amount of the expenditure incurred by such employer in that behalf. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. Where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall also be a fringe benefit or amenity:
Provided that where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the expenses incurred in relation to such extended period of stay or vacation. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity.
(iii) The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
(iv) The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:
Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as “nil”.
(v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:—
(a) complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
(vi) (A) The value of benefit to the employee resulting from the payment or reimbursement by the employer of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by a member of his household shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
Provided that where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the initial fee paid for acquiring such corporate membership.
(B) Nothing contained in this clause shall apply if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled:—
(a) complete details in respect of such expenditure are maintained by the employer which may , inter alia, include the date of expenditure, the nature of expenditure and its business expediency;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
(C) Nothing contained in this clause shall apply for use of health club, sports and similar facilities provided uniformly to all employees by the employer.
(vii) The value of benefit to the employee resulting from the use by the employee or any member of his household of any movable asset (other than assets already specified in this rule and other than laptops and computers) belonging to the employer or hired by him shall be determined at 10 per cent per annum of the actual cost of such asset or the amount of rent or charge paid or payable by the employer, as the case may be, as reduced by the amount, if any, paid or recovered from the employee for such use.
(viii) The value of benefit to the employee arising from the transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his household shall be determined to be the amount representing the actual cost of such assets to the employer as reduced by the cost of normal wear and tear calculated at the rate of 10 per cent of such cost for each completed year during which such asset was put to use by the employer and as further reduced by the amount, if any, paid or recovered from the employee being the consideration for such transfer :
Provided that in the case of computers and electronic items, the normal wear and tear would be calculated at the rate of 50 per cent and in the case of motor cars at the rate of 20 per cent by the reducing balance method.
(ix) The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under an arm’s length transaction as reduced by the employee’s contribution, if any :
Provided that nothing contained in this clause shall apply to the expenses on telephones including a mobile phone actually incurred on behalf of the employee by the employer.
(8)(i) For the purposes of sub-clause (vi) of clause (2) of section 17, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined in accordance with the provisions of sub-clause (ii) or sub-clause (iii).
(ii) In a case where, on the date of the exercising of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange :
Provided that where, on the date of exercising of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share :
Provided further that where, on the date of exercising of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be—
(a) the closing price of the share on any recognised stock exchange on a date closest to the date of exercising of the option and immediately preceding such date; or
(b) the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of exercising of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.
(iii) In a case where, on the date of exercising of the option, the share in the company is not listed on a recognised stock exchange, the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date.
(iv) For the purpose of this sub-rule,—
(a) “closing price” of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange :
Provided that where the stock exchange quotes both “buy” and “sell” prices, the closing price shall be the “sell” price of the last settlement;
(b) “merchant banker” means category I merchant banker registered with Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(c) “opening price” of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange :
Provided that where the stock exchange quotes both “buy” and “sell” prices, the opening price shall be the “sell” price of the first settlement;
(d) “recognised stock exchange” shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(e) “specified date” means,—
(i) the date of exercising of the option; or
(ii) any date earlier than the date of the exercising of the option, not being a date which is more than 180 days earlier than the date of the exercising.
(9) For the purposes of sub-clause (vi) of clause (2) of section 17, the fair market value of any specified security, not being an equity share in a company, on the date on which the option is exercised by the employee, shall be such value as determined by a merchant banker on the specified date.
Explanation.—For the purposes of this sub-rule, “merchant banker” and “specified date” shall have the meanings assigned to them in sub-clause (b) and sub-clause (e) respectively of clause (iv) of sub-rule (8).
(10) This rule shall come into force with effect from the 1st day of April, 2009.
Explanation.—For the purposes of this rule—
(i) “accommodation” includes a house, flat, farm house or part thereof, or accommodation in a hotel, motel, service apartment, guest house, caravan, mobile home, ship or other floating structure;
(ii) “entertainment” includes hospitality of any kind and also, expenditure on business gifts other than free samples of the employers own product with the aim of advertising to the general public;
(iii) “hotel” includes licensed accommodation in the nature of motel, service apartment or guest house;
(iv) “member of household” shall include—
(a) spouse(s),
(b) children and their spouses,
(c) parents, and
(d) servants and dependants;
(v) “remote area”, for purposes of proviso to this sub-rule means an area that is located at least 40 kilometres away from a town having a population not exceeding 20,000 based on latest published all-India census;
(vi) “salary” includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but does not include the following, namely:—
(a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;
(b) employer’s contribution to the provident fund account of the employee;
(c) allowances which are exempted from payment of tax;
(d) the value of perquisites specified in clause (2) of section 17 of the Income-tax Act;
(e) any payment or expenditure specifically excluded under proviso to sub-clause (iii) of clause (2)* or proviso to clause (2) of section 17;
(f) lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, like gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments;
(vii) “maximum outstanding monthly balance” means the aggregate outstanding balance for each loan as on the last day of each month.]
[Prescribed allowances for the purposes of clause (14) of section 10.
2BB. (1) For the purposes of sub-clause (i) of clause (14) of section 10, prescribed allowances, by whatever name called, shall be the following, namely :—
(a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit :
Provided that free conveyance is not provided by the employer;
(d) any allowance granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office or employment of profit;
(e) any allowance granted for encouraging the academic, research and training pursuits in educational and research institutions;
(f) any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit.
Explanation : For the purpose of clause (a), “allowance granted to meet the cost of travel on transfer” includes any sum paid in connection with transfer, packing and transportation of personal effects on such transfer.
(2) For the purposes of sub-clause (ii) of clause (14) of section 10, the prescribed allowances, by whatever name called, and the extent thereof shall be the following, namely :—
Table
| Sl. No. | Name of allowance | Place at which allowance is exempt | Extent to which allowance is exempt |
| (1) | (2) | (3) | (4) |
| 1. | Any Special Compensatory Allowance in the nature of 32[Special Compensatory (Hilly Areas) Allowance] or High Altitude Allowance or Uncongenial Climate Allowance or Snow Bound Area Allowance or Avalanche Allowance | I. (a) Manipur Mollan/RH-2365. | 33[Rs. 800] per month |
| (b) Arunachal Pradesh | | ||
| (i) Kameng; | | ||
| (ii) North Eastern Arunachal Pradesh where heights are 9,000 ft. and above; | | ||
| (iii) Areas east or west of Siang and Subansiri sectors | | ||
| (c) Sikkim | | ||
| (i) Area North-NE-East of line Chhaten LR 0105, Launchung LR 1902, pt. 4326 LW 1790, pt. 4349 LW 1479, pt. 3601 LW 1471 to mile 13 LW 1367 to Berluk LW 2253. | | ||
| (ii) All other areas at 9,000 ft. and above. | | ||
| (d) Uttar Pradesh | | ||
| Areas of Harsil, Mana and Malari Sub-divisions and other areas of heights at 9,000 ft. and above. | | ||
| (e) Himachal Pradesh | | ||
| (i) All areas at 9,000 ft. and above ahead of line joining Puhkajakunzomla towards the bower. | | ||
| (ii) Area ahead of line joining Karchham and Shigrila towards the bower. | | ||
| (iii) All areas in Kalpa, Spiti, Lahul and Tisa. | | ||
| (f) Jammu and Kashmir | | ||
| (i) All areas from NR 396950 to NR 350850, NR 370790, NR 311776 North of Shaikhra Village, North of Pindi Village to NR 240800. | | ||
| (ii) Areas of Doda, Sank and other posts located in areas at a height of 9,000 ft. and above. | | ||
| (iii) North of line Kud-Dudu and Basttgarh, Bilwar, Batote and Patnitop. | | ||
| (iv) All areas ahead of Zojila served by Road Srinagar-Zojila-Leh in Leh District. | | ||
| (v) Gulmarg - All areas forward of line joining Anita Linyan 3309 - Kaunrali – 2407. | | ||
| (vi) Uri South - All areas forward of Kaunrali - Kandi 1810 Kustam 1505 - Sebasantra 1006 Changez 0507 - Jak 19904 Keekar 9704 Jamun 9607 Neeta 9508. | | ||
| (vii) BAAZ Kaiyan Bowl - All areas forward of Dulurja 9712-BAAZ 0317 - Shamsher 0416 including New Shamsher 0615 - Zorawar 1017 - Malaugan Base 1027 - Radha 0836 to Nastachun Pass 9847. | | ||
| (viii) Tangdhar - All areas west of Nastachun Pass Tangdhar Bowl and on Shamshabari Range and forward of it. | | ||
| (ix) Karan and Machhal sub-sectors - All areas along the line Pharkiangali 0869 to Z Gali 4376 and forward of Shamshabari Range. | | ||
| (x) Panzgam, Trehgam and Drugmul. | | ||
| II. Siachen area of Jammu and Kashmir | 34[Rs. 7,000] per month | ||
| III. All places located at a height of 1,000 metres or more above the sea level, other than places specified at (I) and (II) above. | 35[Rs. 300] per month | ||
| 36[2. | Any Special Compensatory Allowance in the nature of Border Area Allowance, Remote Locality Allowance or Difficult Area Allowance or Disturbed Area Allowance | I. (a) Little Andaman, Nicobar and Narcondum Islands; | Rs. 1,300 per month |
| (b) North and Middle Andamans; | | ||
| (c) Throughout Lakshadweep and Minicoy Islands; | | ||
| | | (d) All places on or north of the following demarcation line: | |
| | | Point 14600 (2881) to Sala MS 2686-Matau MS 6777 - Sakong MT 1379-Bamong-Khonawa MO 2803 - Nyapin MO 7525 - River Khru to its junction with the river Kamla MP - 2226 - Taliha - Yapuik MK 7410 - Gshong MK 9749 - Yinki Yong NF 4324-Damoroh MF 6208 - Ahinkolin NF 8811 - Kronli MG 2407 - Hanli NM 4096 -Gurongon NM 4592-Loon NM 7579 - Mayuliang NM 0169-Chawah NM 9943 - Kamphu NM 1125 - Point 6490 (NM 1493) Vijayanagar NSA 486; | |
| | | (e) Following areas in Himachal Pradesh : | |
| | | (i) Pangi Tehsil of Chamba District; | |
| | | (ii) Following Panchayats and villages of Bharmour Tehsil of Chamba District : | |
| | | (A) Panchayat : | |
| | | Badgaun, Bajol, Deol Kugti Nayagam and Tundah. | |
| | | (B) Villages : | |
| | | Ghatu of Gram Panchayat Jagat Kanarsi of Gram Panchayat, Cauhata. | |
| | | (iii) Lahaul and Spiti District; | |
| | | (iv) Kinnaur district: | |
| | | (A) Asrang, Chitkul and Hango Kuno Charang Panchayats; | |
| | | (B) 15/20 Area comprising the Gram Panchayats of Chhota Khamba, Nathpa and Rupi; | |
| | | (C) Pooh Sub-Division excluding the Panchayat Areas specified above. | |
| | | (v) 15/20 Area of Rampur Tehsil comprising of Panchayats of Koot, Labana-Sadana, Sarpara and Chandi Branda of Shimla District. | |
| | | (vi) 15/20 Area of Nirmand Tehsil, comprising the Gram Panchayats of Kharga, Kushwar and Sarga of Kullu District. | |
| | | (f) Chimptuipui District of Mizoram and areas beyond 25 km. from Lunglei town in Lunglei District of Mizoram. | |
| | | (g) Following areas in Jammu and Kashmir: | |
| | | (i) Niabat Bani, Lohi, Malhar and Macchodi of Kathua District; | |
| | | (ii) Dudu Basantgarh Lander Bhamag Illaqa, Thakrakote and Nagote of Udhampur District; | |
| | | (iii) All areas in Tehsil Mahore except those specified at III(f)(i) below in Udhampur District; | |
| | | (iv) Illaqas of Padder and Niabat Nowgaon in Kishtwar Tehsil of Doda District; | |
| | | (v) Leh District; | |
| | | (vi) Entire Gurez - Niabat, Tangdhar Sub-Division and Keran Illaqa of Baramulla District. | |
| | | (h) Following areas of Uttar Pradesh :— | |
| | | (i) Chamoli District; | |
| | | (ii) Pithoragarh District; | |
| | | (iii) Uttarkashi District. | |
| | | (i) Throughout Sikkim State. | |
| | | II. Installations in the Continental Shelf of India and the Exclusive Economic Zone of India. | Rs. 1,100 per month |
| | | III. (a) Throughout Arunachal Pradesh other than areas covered by those specified at I(d) above. | Rs. 1,050 per month |
| | | (b) Throughout Nagaland State. | |
| | | (c) South Andaman (including Port Blair). | |
| | | (d) Throughout Lunglei District (excluding areas beyond 25 km. from Lunglei town) of Mizoram. | |
| | | (e) Dharmanagar, Kailasahar, Amarpur and Khowai in Tripura. | |
| | | (f) Following areas in Jammu and Kashmir : | |
| | | (i) Areas up to Goel from Kamban side and areas upto Arnas from Keasi side in Tehsil Mahore of Udhampur District; | |
| | | (ii) Matchill in Baramulla District. | |
| | | (g) Following areas in Himachal Pradesh : | |
| | | (i) Bharmour Tehsil, excluding Panchayats and villages covered by those specified at I(e)(ii) above of Chamba District; | |
| | | (ii) Chhota Bhangal and Bara Bhangal area of Kangra District; | |
| | | (iii) Kinnaur District other than areas specified at I(e)(iv); | |
| | | (iv) Dodra - Kawar Tehsil, Gram Panchayats of Darkali in Rampur, Kashapath Tehsil and Munish, Ghori Chaibis of Pargana Sarahan of Shimla District. | |
| | | IV. (a) Throughout Aizawal District of Mizoram; | Rs. 750 per month |
| | | (b) Throughout Tripura except areas those specified at III(e); | |
| | | (c) Throughout Manipur; | |
| | | (d) Following areas of Himachal Pradesh : | |
| | | (i) Jhandru Panchayat in Bhatiyat Tehsil, Churah Tehsil, Dalhousie Town (including Banikhet proper) of Chamba District; | |
| | | (ii) Cuter Seraj (excluding Village of Jakat-Khana and Burow in Nirmand Tehsil of Kullu District; | |
| | | (iii) Following areas of Mandi District : | |
| | | (A) Chhuhar Valley (Joginder-nagar Tehsil); | |
| | | (B) Bagra, Chhatri, Chhotdhar, Garagushain, Gatoo, Gharyas, Janjehli, Jaryar, Johar Kalhani Kalwan, Kholanal, Loth, Silibagi, Somachan, Thachdhar, Tachi and Thana Panchayats of Thunag Tehsil; | |
| | | (C) Binga, Kamlah, Saklana, Tanyar and Tarakholah, Panchayats of Dharampur Block; | |
| | | (D) Balidhar, Bagra, Gopalpur, Khajol, Mahog, Mehudi, Manj, Pekhi, Sainj, Sarahan and Teban, Panchayats of Karsog Tehsil; | |
| | | (E) Bohi, Batwara, Dhanyara, Paura-Kothi, Seri and Shoja, Panchayats of Sundernagar Tehsil. | |
| | | (iv) Following areas and offices of Kangra District : | |
| | | (A) Dharamshala town and Women’s ITI; Dari, Mechanical Workshop, Ramnagar; Child Welfare and Town Country Planning Offices, Sakoh; CRSF Office at lower Sakoh; Kangra Milk Supply Scheme, Shamnagar; Tea Factory, Dari; Forest Corporation Office, Sham-nagar; Tea Factory, Dari; Settlement Office, Shamnagar and Binwa Project, Sham-nagar. Offices located outside the Municipal limit of Dharamshala town but included in Dharamshala town for purposes of eligibility to special Compensatory (Remote Locality) Allowance; | |
| | | (B) Palampur town, including HPKVV Campus at Palampur and H.P. Krishi Vishvavidyalaya Campus; Cattle Development Office/ Jersy Farm, Banuri; Sericulture Office/Indo-German Agriculture Workshop/HPPWD Division, Bundla; Electrical Sub-Division, Lohna; D.P.O. Corporation, Bundla and Electrical HPSEE Division, Ghuggar offices located outside the Municipal limits of Palampur town but included in Palampur town for the purpose of above allowance; | |
| | | (v) Chopal Tehsil; Ghoris, Panjgaon, Patsnu, Naubis and Teen Koti of Pargana Sarahan; Deothi Gram Panchayat of Taklesh Area; Pargana Barabis; Kasba Rampur and Ghori Nog of Pargana Rampur of Rampur Tehsil of Shimla District and Shimla Town and its suburbs (Dhalli, Jatog, Kasumpti, Mashobra, Taradevi and Tutu); | |
| | | (vi) Panchayats of Bani, Bakhali (Pachhad Tehsil), Bharog Bhe-neri (Paonata Tehsil), Birla (Nahan Tehsil), Dibber (Pachhad Tehsil) of Thanan Kasoga (Nahan Tehsil) in Sirmour District and Transgiri Tract of Sirmour District; | |
| | | (vii) Mangal Panchayat of Solan District; | |
| | | (e) Following areas in Jammu and Kashmir : | |
| | | (i) Areas in Poonch and Rajouri Districts excluding the towns of Poonch and Rajouri and Sunderbani and other Urban areas in the two districts; | |
| | | (f) Following areas in Jammu and Kashmir : | |
| | | Areas not included in I(g), III(f) and IV(e) above, but which are within a distance of 8 km. from the line of actual control or at places which may be declared as qualifying for Border Allowance from time to time by the State Government for their own staff. | |
| | | V. Jog Falls in Shimoga District in Karnataka. | Rs. 300 per month. |
| | | VI. (a) Throughout the State of Himachal Pradesh other than areas covered by those specified in I(e), III(g) and IV(d) | Rs. 200 per month.] |
| | | (b) Throughout the State of Assam and Meghalaya | |
| 3. | 37[Special Compensatory (Tribal Areas/Schedule Areas/Agency Areas) Allowance] | (a) Madhya Pradesh | 38[Rs. 200] per month. |
| (b) Tamil Nadu | | ||
| (c) Uttar Pradesh | | ||
| (d) Karnataka | | ||
| (e) Tripura | | ||
| (f) Assam | | ||
| (g) West Bengal | | ||
| (h) Bihar | | ||
| (i) Orissa | | ||
| 4. | 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 | |
| 5. | Children Education Allowance | Whole of India | 40[Rs. 100] per month per child up to a maximum of two children. |
| 6. | Any allowance granted to an employee to meet the hostel expenditure on his child | Whole of India | 41[Rs. 300] per month per child up to a maximum of two children. |
| 7. | Compensatory Field Area Allowance | (a) Following areas in Arunachal Pradesh :— | 42[Rs. 2,600] per month. |
| | | (i) Tirap and Changlang Districts; | |
| | | (ii) All areas North of line joining point 4448 in LZ 4179-Nukme Dong MS 3272-Sepla MT 2969-Palin MO 9213-Daporijo NR 5841-Along NL 1273-Hunli NM 3196-Tidding Tuwi MT 6369-Hayuliang NN 0170-Tawaken MT 8136-Champai Bun NM 8814, all inclusive. | |
| | | (b) Throughout Manipur and Nagaland. | |
| | | (c) Following areas in Sikkim :— | |
| | | All areas North and North East of line joining Phalut LV 4750-Gezing LV 7059-Mangkha LV 6160-Penlang La LW 0666-Rangli LW 1448-BP 1 in LW 2453 on Indo-Bhutan Border, all inclusive. | |
| | | (d) Following areas in Himachal Pradesh : | |
| | | All areas East of line joining Umasila NV 3951-Udaipur NY 8663-Manikaran SB 2300-Pir Parbati Pass TA 1459-Taranda TA 2335-Barasua Pass TA 8801, all inclusive. | |
| | | (e) Following areas in Uttar Pradesh :— | |
| | | All areas North and North-East of line joining Barasua Pass Gangnani TG 1362-Govind Ghat TG 0937-Tapovan TH 1822-Musiari TN 8982-Relagad TO 2466, all inclusive. | |
| | | (f) Following areas in Jammu and Kashmir :— | |
| | | (i) Areas North and East of line joining Zojila MU 3036-Baralachala NE 6672 along the Great Himalayan Range, all inclusive; | |
| | | (ii) All areas West of line joining point 1556 in NR 5470-Gulmarg MT 3105-Naushara MY 3105-Ringapat MT 2133-Handwara MT 2043-Laingyal MT 2339-Point 8405 in NG 4565-North of line joining point 8403-Bunakut MT 5453-Razan NN 2239-Zojila, all inclusive; | |
| | | (iii) All areas West of line joining tip of Chicken Neck RD 7073-Canal junction RD 6364-Mawa Brahmana RD 6183-Chauki RD 6393-Road junction RD 6499-Baramgala MY 3854-Point 1556 in NR 5470, all inclusive. | |
| 8. | Compensatory Modified Field Area Allowance | (a) Following areas in Punjab and Rajasthan :— | 43[Rs. 1,000] per month |
| | | Areas West of line joining Jessai, Barmer, Jaisalmer, Pokharan, Udasar, Mahajan Ranges, Suratgarh, Lalgarh, Jattan, Abohar, Govindgarh, Fazilka, Jandiala Guru, Moga, Dholewal, Deas, Bir Sarangwal, Hussainiwala, Dera Baba Nanak, Laisain pulge upto the international border, all inclusive. | |
| | | (b) Following area in Haryana :— | |
| | | Satrod (Hissar). | |
| | | (c) Following areas in Himachal Pradesh :— | |
| | | Areas North of line joining Narkhanda, Keylong upto Field Area line/High Altitude line. | |
| | | (d) Following areas in Arunachal Pradesh and Assam :— | |
| | | (i) Cachar and North Cachar Districts of Assam including Silchar; | |
| | | (ii) All areas of Arunachal Pradesh and Assam North of river Brahmaputra except Tejpur - Misamari and Field Areas. | |
| | | (e) Throughout Mizoram and Tripura. | |
| | | (f) Following areas in Sikkim and West Bengal :— | |
| | | Areas Northwards of line joining Sevoke LV 9112-Burdong LV 985-Sherwani LV 9453 -Bagrakot LW 0113-Damdim LW 1109-New Mal-Hasimara-QB 7894 Ganga Ram Tea Estate QA 1377 upto the High Altitude line/field area line/inter-national border, all inclusive. | |
| | | (g) Following areas in Uttar Pradesh :— | |
| | | Areas North of line joining Uttarkashi, Karan Prayag, Gauchar, Joshimath, Chamoli, Rudra Prayag, Askote, Charamgad, Dharchula, Kausani and Narendra Nagar upto inter-national border, all inclusive. | |
| | | (h) Following areas in Jammu and Kashmir :— | |
| | | (i) Areas West of line joining Pattan, Baramulla, Kupwara, Drugmula, Panges, Mankes, Buniyar, Pantha Chowk, Khanabal, Anantnag, Khundru and Khru upto the existing High altitude line, all inclusive; | |
| | | (ii) Areas West of line joining - BP-19, Brahmanadi-Bari, Jindra, Dhansal, Katra, Sanjhi Chatt, Batote, Patnitop, Ram-ban and Banihal upto the existing High altitude line, all inclusive. | |
| 9. | Any special allowance in the nature of counter-insurgency allowance granted to the members of armed forces operating in areas away from their permanent locations 44[***] | Whole of India | 45[Rs. 3,900] per month. |
| 46[10. | Transport allowance granted to an employee 47[other than an employee referred to in serial number 11] 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.] |
| 48[11. | 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.] |
| 49[12. | Underground Allowance granted to an employee who is working in uncongenial, unnatural climate in underground 50[***] mines | Whole of India | Rs. 800 per month.] |
| 51[13. | 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. | ||
| 14. | 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.] |
| 52[15. | 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:] |
Provided that any assessee claiming exemption in respect of the allowances mentioned at serial numbers 7 and 8 shall not be entitled to the exemption in respect of the allowance referred to at serial number 2:
Provided further that any assessee claiming exemption in respect of the allowance mentioned at serial number 9 shall not be entitled to the exemption in respect of disturbed area allowance referred to at serial number 2.]
