16 March 2009
salary received by any MLA or MP is taxable under the head income from other sources as there is no relationship of employer and employee. Is there any difference if any MLA or MP is a minister also and getting salary?
16 March 2009
CBDT Vide Circular F. Mo. 40/29/67-IT, dated 22/5/1967 stated that an MP or an MLA is not treated as employee of the Government, hence remuneration and allowances received by them are not chargeable to tax under the head salary. The situation does not change, according to me, since the position of Minister is by virtue of being elected as MP/MLA.