30 October 2009
"185. Salary received by Members of Parliament - Whether chargeable to tax under the head “Salariesâ€
The salaries of Members of Parliament are governed by the Salaries and Allow-ances of Members of Parliament Act, 1954. It is undeniable that a Member of Parliament is not an employee of the Government. Therefore, the salary received by him as M.P. will not be chargeable to income-tax under the head “Salaries†but as “Income from other sources†under section 56 of the Income-tax Act."
Letter : F. No. 40/29/67-IT(A-I), dated 22-5-1967.
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