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Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2018 Chapters List Part V AMENDMENTS TO THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT ACT, 1954 This

Clause 140 - Amendment of section 4 - FINANCE BILL, 2018

FINANCE BILL, 2018
Part V
AMENDMENTS TO THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT ACT, 1954
  • Contents

140. Amendment of section 4.

In the principal Act, in section 4, in sub-section (1),-

(i) clause (a) shall be omitted;

(ii) in clause (b), the words “and one fourth of the” shall be omitted;

(iii) in clause (c), in sub-clause (i), the words “and three-fifth of the’’ shall be omitted.

 



 

Notes on Clauses:

Clauses 138 to 142 of the Bill seeks to amend the Salary, Allowances and Pension of Members of Parliament Act, 1954.

Section 3 of the said Act relates to salaries and allowances to the Members of Parliament. It is proposed to amend the said section to enhance the salary of members from the existing fifty thousand rupees per mensem to one lakh rupees. It is also proposed to insert a new sub-section (2) in the said section so as to provide that the salary and daily allowance of the members shall be increased after every five years commencing from 1st April, 2023 on the basis of Cost Inflation Index provided under clause (v) of section 48 of the Income-tax Act, 1961.

Section 4 of the aforesaid Act relates to travelling allowances. It is proposed to omit clause (a) of the said section which relates to reimbursement of one first class rail fare plus one second class fare in respect of journey performed by the member in any class. It is further proposed to amend clause (b) of the aforesaid section, so as to reimburse one air fare for journey by air. It is also proposed to amend clause (c) of the aforesaid section so as to reimburse one fare for the journey performed by steamer.

Section 8A of the aforesaid Act relates to pension. It is proposed to amend sub-section (1) of the said section so as to enhance the pension from the existing twenty thousand rupees per mensem to twenty-five thousand rupees per mensem. It is also proposed to enhance the additional pension of fifteen hundred rupees per mensem to two thousand rupees per mensem for every year served in excess of five years. It is proposed to insert a new sub-section (1A) in the said section so as to provide that the pension and additional pension to every person shall be increased after every five years commencing from 1st April, 2023 on the basis of Cost Inflation Index provided under clause (v) of section 48 of the Income-tax Act, 1961.

Section 8AC of the aforesaid Act relates to family pension. The said section has been inserted with effect from 15th September, 2006 by the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2006. It is proposed to amend sub-section (2) of the aforesaid section so as to remove the reference of 2006 amendment Act to remove any confusion regarding interpretation of the aforesaid section retrospectively with effect from 15th September, 2006.

 
 
 
 

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