The deadline for filing Income Tax Returns (ITRs) might be behind us, but for those who haven’t filed yet or are planning for next year, here’s a valuable tip: you can use the Account Statement (AS-24) or Form 16 for filing your ITR-1.
The EXEMPT & TAXABLE ALLOWANCE FOR ARMY & SECURITY PERSONAL AS PER INCOME TAX ACT, 1961 are below :-
Fully Taxable Pay & Allowances
| Pay/Allowance Description | Tax Status |
| Pay in the Pay Band | Fully Taxable |
| Basic Pay | Fully Taxable |
| Dearness Allowance (DA) | Fully Taxable |
| Military Service Pay | Fully Taxable |
| Grade Pay | Fully Taxable |
| Non-Practicing Allowance | Fully Taxable |
| Hazard/Special Hazard/Risk Allowance | Fully Taxable |
| Para Allowance/Para Reserve Allowance/Special Commando Allowance/Cobra Allowance | Fully Taxable |
| City Compensatory Allowance | Fully Taxable |
| Deputation (Duty) Allowance | Fully Taxable |
| Technical Allowance | Fully Taxable |
| Qualification Pay | Fully Taxable |
| Special Action Group Allowance (on posting to NSG) | Fully Taxable |
| Technical Pay | Fully Taxable |
| Language Allowance | Fully Taxable |
| Qualification Grant | Fully Taxable |
| Language Award | Fully Taxable |
| Flying Allowance | Fully Taxable |
| Leave Encashment on LTC | Fully Taxable |
| Specialist Allowance | Fully Taxable |
| Test Pilot Allowance | Fully Taxable |
| Instructor Allowance | Fully Taxable |
| Flight Test Allowance | Fully Taxable |
| Security Allowance | Fully Taxable |
| Strategic Force Allowance | Fully Taxable |
| Any pay/allowance not specified anywhere | Fully Taxable |
Fully Exempt Pay & Allowances
| Pay/Allowance Description | Tax Status |
| Gallantry Award | Fully Exempt |
| Foreign Allowance | Fully Exempt |
| Bhutan Compensatory Allowance | Fully Exempt |
| Servant Wages Allowance with BCA | Fully Exempt |
| Purchase of Crockery/Cutlery/Glassware | Fully Exempt |
| Outfit Allowance on posting to Embassy | Fully Exempt |
| Arrears of Cash Grant – Foreign Allowance (Nepal) | Fully Exempt |
| Myanmar Allowance | Fully Exempt |
| Representation Grant for use of crockery set | Fully Exempt |
| Encashment of Leave on retirement | Fully Exempt |
| Outfit Allowance (Initial/Renewal) | Fully Exempt |
| Compensation for the change of uniform | Fully Exempt |
| Kit Maintenance Allowance | Fully Exempt |
| Uniform Allowance (MNS) | Fully Exempt |
| Special Winter Uniform Allowance | Fully Exempt |
| Any payment from Provident Fund | Fully Exempt |
| Payment of Compensation – Disability Pension | Fully Exempt |
Partially Exempt Pay & Allowances
| Pay/Allowance Description | Exemption Details |
| Special Compensatory Allowances (High Altitude, Uncongenial Climate, Snow Bound Area Allowance) | Varies based on location and specific criteria |
| Special Compensatory Allowance in the nature of Border Area Allowance, Remote Locality Allowance, Difficult Area Allowance, or Disturbed Area Allowance | Extent of exemption depends on specific remote or disturbed area designation |
This table format provides a clear and structured overview of the tax status of various pay and allowances for army personnel as per the Income Tax Act, 1961.
