Does the President of India (Ram Nath Kovind) pay income tax?
Recently the President of India, Ram Nath Kovind had said at a public event that he pays rupees 2.75 lakh as tax every month out of his salary of 5 lakhs. Many people had their doubts about this statement which would be cleared in the article below. The people of India were of the opinion that the President's life is tax free but they found a shock when the President mentioned taxes. Let us know about the President's salary and his tax structure here. Salary of the President:  The President's salary is charged from the consolidated fund of India. It comes under the President's Emoluments Pension Act 1951. The provisions are laid down under this act for the salary, emoluments and post retirement benefits for the President. It was in 2017 when the salary of the President of India was increased from 1.5 LPA to 5 LPA. Timeline of the President's Salary:  1951: Rs 10,000 + 15000 allowance  1985: Rs 15000 + 30,000 allowance  1989: Rs 20,000 + 10,000 allowance  1998: Rs 50,000 + allowances  2008: Rs 1,50,000 + allowances  2017: Rs 5,00,000 + allowances  It was in 2017, when it was decided that the pension of the President would be not 3 LPA, but 50% of his salary per month. The President of India has lifetime access to free housing and medical facilities. These facilities are available in addition to salary and pension. Post Retirement facilities of the President:  The former Presidents of India are entitled to a fully furnished residence, telephone facilities, a car, medical treatment, travel facilities, secretarial staff and other expenses upto 1,00,000 per annum. Even the spouse of the President who is deceased, is entitled to a family pension at the rate of 50% of the pension of a retired President. He/she may also get a furnished residence, phone facility, car, medical treatment, travel facility, secretarial staff and office expenses upto 20,000 per annum. Tax Liability of the President:  Under the Income Tax Act 1995:  As per section 14 (Heads of Income) and Section 10 (income not included in the total income), the income that is not specified as exempted from the income tax under the law is considered taxable. Neither the Income Tax Act nor the President (Emoluments and Pension) Act specify the exemption from the salary of the President of India from taxation. Thus it is mandatory for the President to pat his taxes on income. However the confusion arises because the President's nature of income can be classified as Salary or Income from other sources. The amount of tax to be paid by the President of India:  To calculate this firstly information like following is required:  Is the President a senior citizen (In maximum cases he/she is) Has the President received income as salary or other source Whether he/she makes investments to save on tax liabilities. The tax is then calculated following the tax standards of India. Following the tax slabs the President of India has to pay approximately 18.44 lakh per annum in taxes in case he/she does not follow a concessional tax regime. The tax computation for the current financial year for an income of 5 LPA comes to 17.60 lakh per annum. This calculation assumes that the President has opted for a concessional tax rates regime. It also does not consider tax deductions on account of eligible investments and tax concessions. Recently during the Covid-19 lockdown and the fight against it, the President did not take 30% of his salary. This means his salary was cut by 30% and he was getting INR 1.5 LPA less. This would have given him a lesser tax burden as taxable income is reduced. Another way to reduce taxes would be in case the President voluntarily chooses to surrender his salary under Voluntary Surrender of Salaries (Exemption of Taxation) Act 1961. This exemption is not just for the President but any man/woman who chooses to surrender his salary which is derived from the Consolidated Fund of India. Read| List of Vice-Presidents of India and their Term of Office (1952-2021)  Related Article| GK Questions and Answers on Directive Principles of State Policy (DPSP)