Exemption of TA Element from Kilometrage Allowance from the purview of Income Tax in the case of Running Staff
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)
The Cabinet Secretary,
Government of India,
Sub: Exemption of TA Element from Kilometrage Allowance from the purview of Income Tax in the case of Running Staff — Indian Railways.
Ref: (i) Minutes of 47th Meeting of NC/JCM held on 13/04/2019 (Para 4.16).
(ii) NFIR’s letter No. IV/NC-JCM/Pt. V dated 21/08/2019 & 31/12/2019.
Kind attention is invited to Para 4.16 of the Minutes of 47th Meeting of National Council of JCM held on 13th April, 2019 at Rail Bhavan, New Delhi under the chairmanship of the Cabinet Secretary wherein the Leader (Staff Side) raised the issue of “Exemption of TA portion of Kilometrage Allowance of Running Staff in Railways from the purview of Income Tax”. An extract of Para 4.16 of the Minutes is placed below for kind perusal:-
“Exemption of TA Element from Kilometrage from the purview of Income Tax. It was explained that 70% of Kilometrage Allowance (KMA) paid to Running Staff is the Travelling Allowance (TA) component. Therefore this should be exempted from Income Tax as TA is not taxable”.
NFIR feels disappointed that though a period of more than ten months has passed, action taken in the matter is yet to be conveyed to us while Running Staff are extremely disappointed over income tax deduction resorted to by authorities on Travelling Allowance. It is further brought to your kind notice that the Railway Ministry had already sent proposal to Chairman, CBDT seeking approval, while the Chairman, Railway Board had also sent D.O. letter No. F(X)I/2012/23/9 dated 22/07/2018 to CBDT to consider and give clearance.
I would therefore, once again request you to kindly intervene and see that clearance is given by the CBDT to the Railway Ministry soon for exemption of TA element of Kilometrage Allowance from the purview of Income Tax.
A line in reply will be highly appreciated.
(Dr. M. Raghavaiah)
Leader JCM (Staff Side)