Many Allowances to MLA & MP Are Taxable !


It is generally believed that allowances granted to Member of Parliament or Member of Legislative Assembly are tax free. However , this is not correct as per the provision of Income Tax Act and related Income Tax Rules. In fact , the issue of exemption has gone to courts and they have held in favour of Revenue on the issue of tax exemption to MPs and MLA . One premium subscriber CA Anshul Dokania  has asked whether following receipt of allowances are tax free in hand of MLAs :

1. Traveling Allowances

2. Stationery Allowances

3. Constituency Allowances.

4. Daily Allowances

This content is for annual members only.

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