india

Updated: Apr 04, 2019 08:08 IST

The government is likely to give tax exemption on ration money and risk and hardship allowances to the jawans of central paramilitary forces – Central Reserve Police Force (CRPF), Central Industrial Sescurity Force (CISF), Border Security Force (BSF), Indo-Tibetan Border Police (ITBP) and Sahastra Seema Bal (SSB)— ministry of home affairs officials familiar with the matter said.

The move, when implemented, is expected to benefit about nine lakh personnel of the paramilitary forces, officials cited above said. They added that the finance ministry has given an assurance to the home ministry that it would consider the demand to exempt ration money allowance and risk and hardship allowance granted to paramilitary personnel from the purview of income tax.

In a recent letter to the home ministry, the finance ministry conveyed that the longstanding demand of forces would be examined during the ensuring budgetary exercise. This was in response to a communication from the home ministry which raised the issue of tax exemption on ration money allowance given to paramilitary personnel on the basis of parity with other uniformed forces and Pay Commission recommendations.

Personnel of defence forces, Assam Rifles and NSG are given free ration while personnel of CRPF, BSF, CISF, ITBP and SSB are granted Ration Money Allowance . Personnel of paramilitary forces up to non-gazetted ranks such as constable, head constable, assistant sub inspector, sub inspector and inspector are entitled to an RMA of Rs 3,000 per month. The 7th Pay Commission in its report has recommended that looking into the unique service conditions of paramilitary personnel and since RMA is granted in lieu of free ration, it should be exempt from tax.