A member of parliament is entitled to salary, constituency allowance and daily allowance when the Parliament is in session. Which out of the following statements is correct?

CS Executive · Tax Laws · PYQS · December 2022
A member of parliament is entitled to salary, constituency allowance and daily allowance when the Parliament is in session. Which out of the following statements is correct?
(A) His entire income is taxable under the head "Salaries"
(B) His salary component and constituency allowance is taxable under the head "Income from other sources". Daily allowance is exempted
(C) Only his salary component is taxable under the head "Income from other sources". Constituency allowance and daily allowance are exempted
(D) Only his salary component is taxable under the head "Salaries". Constituency allowance and daily allowance are exempted

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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