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Taxability of income

Mahesh Chandra Mohapatra (189 Points)

28 January 2021

Is the allowances and pension received by M.L.A. and M.P. taxable

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10 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 28 January 2021

No it is not taxable it is exempt

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ayusmita (Tax consultant) (5885 Points)
Replied 28 January 2021

Allowance received by MLA and MP are exempted but not the daily expenses
like telephone, traveling, office expenses etc they are exempted upto the money being used out of given
the rest balance is taxable under the head income from other sources
pension received by MLA and MP are taxable in their hands under income from other sources

sabyasachi mukherjee (27330 Points)
Replied 29 January 2021

Mahesh

the allowances received by MLa and mp are non taxable .
Bit the daily expenses are perk they are tax free.

Kapadia Pravin (17259 Points)
Replied 29 January 2021

Allowances prescribed are not taxable under section 10.

sabyasachi mukherjee (27330 Points)
Replied 29 January 2021

Sec 10 is a broad based covers .
Sec 10(34) is the correct one.

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ayusmita (Tax consultant) (5885 Points)
Replied 29 January 2021

Section 10(17) and section 10 (14) are exemption section but have to see to know the ceteria is applicable or not

sabyasachi mukherjee (27330 Points)
Replied 29 January 2021

Sec 10 (14 ) is for in general.
Not for MP..

Kapadia Pravin (17259 Points)
Replied 29 January 2021

daily allowances are exempt from tax under section 10(17)(i) of income-tax act, while constituency allowances are exempt as per section 10(17)(ii).