Cabinet approves amendments to multiple allowances for MPs

Union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved amendments to Housing and Telephone Facilities Rules, Constituency allowance rules and office expense allowance rules for MPs.

The amendments will see a hike in the allotment of state funds dedicated to the following:

· The furniture at the residences of Members of Parliament (from Rs. 75,000 to Rs. 1,00,000),

· The Constituency Allowance (from Rs. 45,000 to Rs. 70,000),

· The Office Expense Allowance for Members of Parliament from Rs. 45,000/- per month (Rs. 15,000/- for expenses on stationary items and postage plus Rs. 30,000/- for a computer literate person engaged by Member of Parliament for obtaining secretarial assistance) to Rs. 60,000/- per month (Rs. 20,000/- for expenses on stationary items and postage plus Rs. 40,000/- for a computer literate person engaged by Member of Parliament for obtaining secretarial assistance).

There is also leeway for improving the broadband facilities at an MP's residence.

These amendments will be in effect from the first of April this year, and shall be increased after every five years commencing from 01.04.2023 on the basis of Cost Inflation Index provided under clause (v) of Explanation to section 48 of the Income Tax Act, 1961.