Income Tax eFiling for Defence Persons

Income Tax eFiling for Defence Persons


You are the back bone of the our nation You leave everything  for providing us with nothing left behind,  read on to find a solution regarding your compliance requirement from Income Tax perspective.

Source of Income

Serving Defence personnel receive salary income which shall be taxable under the head Income from the head Salaries.

Those defense personnel who were retired from the service receive pension income which also be taxable under the head income from Salaries.

 Taxability and filing of return

As defence personnel receive salary income they are required to file their income tax returns for a particular financial year on or before 31.July of the following year after the current financial year.

Defence personnel shall be issued with form16 containing the total salary received and the total TDS deducted, based in which their Income Tax return shall be filed.

 Allowances

Defence personnel get allowances due to the special nature of duties which are being entrusted on them, out of which certain allowances are taxable while other are not taxable or partly taxable.

Allowances such as military grade pay, pay commission, service badge pay, flying/submarine allowances, Special Forces allowance, sea duty allowances, dearness allowance are fully taxable.

Allowances such as Siachen allowance, house rent allowance, Special compensatory allowance, and compensatory field area allowance shall be party liable to income tax based on the pre defined limits.

 Fully exempted allowances

1) Gallantry award

2) Foreign allowance

3) Bhutan compensatory allowance

4) Servant wages allowance

5) Outfit allowance on posting to a Embassy

6) Myanmar allowance

7) Outfit allowance

8)Special winter uniform allowance

9)Kit maintenance allowance

Allowances which are partly exempted

 

S No

Particulars/Description

Amount of Exemption (Amount in Rs)

1.

Saichen Allowance

7000 per month

2.

Reimbursement of medical expenditure

Actual amount reimbursed subject to a maximum of 15,000 per annum.

3.

Compensatory field area allowance

2,600 per month

4.

Compensatory modified field area allowance

1,000 per month

5.

Allowance in the nature of counter insurgency allowance

3,900 per month

6.

Transport allowance

1,600 per month

7.

Highly active field area allowance

4,200 per month

8.

High altitude uncongenial allowance

a)Altitude of 9000 to 15000 ft

1,060 per month

b)Altitude above 15000 ft

1,600 per month

9.

Island Allowance

3,250 per month

 

 Refund and relief

Armed forces personnel generally receive salary of one year in the consequent years known as arrears of salary.

Such receipt of arrears of salary is the basis of claiming of relief under section 89(1)

For claiming relief under section 89(1) one has to file a relief claim in a separate known as form  10E in which the assesse is required to provide the details regarding the arrears received in the current year, salary of the current year etc.

Form 10E has to be filed before filing the income tax return if in case the assesse is availing relief under section 89(1)

Allow ability of deductions

All other deductions under chapter viA which are allowed to individuals shall be equally allowed to armed forced personnel such as 

a)A n individual can claim deduction  of Life insurance premium paid, Tuition fees to children(Up to a maximum of 2 Children), Fixed deposit, Investment in mutual funds, Investment in public provident fund, etc up to a maximum of Rs.1,50,000 per annum.

b)An individual can claim deduction if any amount is paid for medical and health insurance policies of self, spouse, parents, children to a maximum amount of Rs.25,000, if the individual Architect is a senior citizen aged 60 years or more the deduction will be Rs.30,000