NEW DELHI: Central Armed Police Force (CAPF) personnel may get tax exemption on ration money allowance and risk and hardship allowance which is given to them for postings in difficult areas such as Kashmir, some parts of North East and Maoist hit regions, MHA officials said on Wednesday.The finance ministry has given an assurance to the Ministry of Home Affairs (MHA) that it would consider the demand to exempt ration money allowance and risk and hardship allowance granted to paramilitary personnel from the purview of income tax, a home ministry official said.
The move, if implemented, is expected to benefit about nine lakh personnel of CAPF — CRPF, BSF, CISF, ITBP and SSB. In a recent letter to MHA, the finance ministry conveyed that the long-standing demand of forces would be examined during the ensuring budgetary exercise.
The finance ministry responded to a communication from MHA which had raised the issue of tax exemption on ration money allowance given to paramilitary personnel on the basis of parity with other uniformed forces and Pay Commission recommendations.
At present, Assam Rifles and NSG personnel are given free ration, while personnel of CRPF, BSF, CISF, ITBP and SSB are granted Ration Money Allowance (RMA). The 7th Central Pay Commission has recommended that paramilitary personnel be relieved of income tax. “There is a strong case for exempting RMA of paramilitary forces from income tax,” another official said.
The MHA also raised the issue of exemption of risk and hardship allowance of paramilitary personnel from income tax, the official said. Quantum of risk and hardship allowance varies between `6,000 and `25,000 per month per head, depending on various factors.