State how the following incomes will be chargeable to tax and if taxable, also the head of income: Salary received by a Member of Parliament.

CS Executive · Tax Laws · PYQS · December 2018
State how the following incomes will be chargeable to tax and if taxable, also the head of income: Salary received by a Member of Parliament.

Answer & Explanation:

Salary received by Member of Parliament is taxable under the head "Income from Other Sources" and not under the head salaries as Member of Parliament is not an employee of the Government. He is only an elected representative of the people. Daily Allowance or any allowance received under the Members of Parliament (Constituency Allowance) Rules, 1986, by Member of Parliament is exempt u/s 10(17) of Income Tax Act, 1961.

Topics: Income Tax Act, 1961

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