TAX ON RUNNING(KM) ALLOWANCE
Raj kumar (111 Points)
15 April 2019kindly explain....
Raj kumar (111 Points)
15 April 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183108 Points)
Replied 23 June 2023
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Raja jaiswal
(Student)
(2 Points)
Replied 18 July 2023
How tax calculated on Running allowance of Railway's LOCO PILOT & GUARD. They get every month Running allowance according to their Run kilo metre in a month. THIS
Kind attention is invited to Para 4.16 of the Minutes of 47th Meeting of National Council of JCM held on 13th April, 2019 at Rail Bhavan, New Delhi under the chairmanship of the Cabinet Secretary wherein the Leader (Staff Side) raised the issue of “Exemption of TA portion of Kilometrage Allowance of Running Staff in Railways from the purview of Income Tax”. An extract of Para 4.16 of the Minutes is placed below for kind perusal:-
“Exemption of TA Element from Kilometrage from the purview of Income Tax. It was explained that 70% of Kilometrage Allowance (KMA) paid to Running Staff is the Travelling Allowance (TA) component. Therefore this should be exempted from Income Tax as TA is not taxable”.
NFIR feels disappointed that though a period of more than ten months has passed, action taken in the matter is yet to be conveyed to us while Running Staff are extremely disappointed over income tax deduction resorted to by authorities on Travelling Allowance. It is further brought to your kind notice that the Railway Ministry had already sent proposal to Chairman, CBDT seeking approval, while the Chairman, Railway Board had also sent D.O. letter No. F(X)I/2012/23/9 dated 22/07/2018 to CBDT to consider and give clearance.
I would therefore, once again request you to kindly intervene and see that clearance is given by the CBDT to the Railway Ministry soon for exemption of TA element of Kilometrage Allowance from the purview of Income Tax.