7th Pay Commission: CPC tax benefits expected for over 9 lakh central paramilitary force staff

ZeeBiz WebTeam | Apr 15, 2019, 04:45 PM IST

7th Central Pay Commission (CPC): When the new government will present full Budget in July 2019, over 9 lakh paramilitary force Jawans are expected to get good news as Union finance ministry has assured the home ministry that it will look into the long pending demand of the forces. The demands pending for a long time include exempting ration money allowance and risk and hardship allowances from taxes. The paramilitary forces comprise CRPF, BSF, CISF, ITBP and SSB. 


Earlier in its report, the 7th Pay Commission had recommended that in view of unique service conditions of paramilitary personnel and since Ration Money Allowance (RMA) is granted in lieu of free ration, it should be exempt from income tax. Image source: PTI


The 7th Pay Commission had also recommended that provision of free rations and the grant of Ration Money Allowance to officers of defence forces posted in peace areas should be withdrawn. Image source: PTI


Union home ministry has sought finance ministry's attention through its letter saying the long-pending demand of forces should be looked into as soon as possible, said PTI report, adding that the finance ministry had assured to examine the demand in the ensuring budgetary exercise. Image source: Reuters


Those entitled to ration money allowance of Rs 3,000 per month include non-gazetted rank personnel of paramilitary forces like constables, assistant sub-inspectors etc. Notably, the risk and hardship allowance varies from Rs 6,000 to Rs 25,000 per month for the paramilitary personnel. Image source: Reuters


The 7th CPC report had said, "Ration Money Allowance (RMA) is paid to all personnel of Defence forces and non-gazetted personnel of CAPFs, Delhi Police, IB, A&N police and such personnel of Indian Reserve Battalions (IRBn) as are posted in Andaman and Nicobar Islands and don’t dine in the mess. The existing rate of this allowance is Rs 95.52 per day for Non-Gazetted personnel and Rs 79.93 per day for Gazetted personnel." Image source: Reuters