Indian Navy Tax Rules: It is the dream of millions of youth to work in the Indian Navy. It is special for every soldier to feel proud while serving the country. But is there no tax on the earnings of soldiers working in the Navy? Many people feel that, like the Merchant Navy, Indian Navy soldiers also do not have to pay tax. Let us know what the reality is.
Is the salary of the Indian Navy tax-free?
The salary, allowances, and pension received by the officers and soldiers working in the Indian Navy usually come under the tax net. According to the Income Tax Act, they also have to pay tax on their earnings, just like any common government employee has to pay, whether they are at sea or on land.
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On which allowances are tax-exempt?
Let us tell you that there are some special allowances for which a full or partial exemption is available from tax. This includes field allowance, high altitude allowance, hardship allowance, uniform allowance, hazard allowance, etc. Let us tell you that these allowances are exempted under the Income Tax Act, but this exemption is not on the entire salary. It applies only to a part of these allowances.
Which amount is not taxed after retirement?
Let us tell you that after retirement from the Navy, certain payments are tax-free, which include gratuity, commuted pension, disability pension, etc. However, to get an exemption on these, it is necessary to file the ITR correctly and provide all the necessary documents.
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Difference between the Indian Navy and the Merchant Navy?
Let us tell you that the Indian Navy is a military organization whose job is to protect the maritime borders of the country. It provides facilities like permanent employment, pension, and medical. At the same time, the Merchant Navy is a commercial sector that works to transport goods or passengers from one place to another by sea. Most of the jobs in it are contract-based, and government facilities are limited.