Fee and Honorarium

 DIFFERENCE BETWEEN FEE AND HONORARIUM? Question asked in HPFAS (2008, 2013, 2018)      

                                                 FEE

Fee is a recurring or non-recurring payment to a Government Servant as remuneration for service done by him for a private person or body or for a public body including a body administering a Local Fund from a source other than the Consolidated Fund of India / Consolidated Fund of State / Consolidated Fund of Union Territory whether made directly or indirectly through the intermediary of Government and does not includes:-

(a) Unearned income such as income from property, dividends and interest on securities.

(b) Income from literary, cultural, artistic, scientific or technological effort.

(1) If the source of payment is not the Consolidated Fund of India/ Consolidated Fund of State/ Consolidated Fund of Union Territory, the payment is classified as fee.

(2) Unless specially exempted by Government in cases where the fee exceed Rs. 5000  Rs. Five Thousand Rupees Only (Form the Year 2021) in a Financial Year, One Third (1/3rd) of such fees in excess of Rs. 5000 shall be credited to the Consolidated fund of India or of the state to which his pay and allowances are charged, subject to the condition that the balance amount retained by him does not fall short of Rs. 5000. 

 

 

                                        HONORARIUM

Honorarium is a recurring or non-recurring payment granted to a Government servant from the Consolidated Fund of India/ Consolidated Fund of State/ Consolidated Fund of Union Territory as remuneration for a special work of an occasional or intermittent character.

(1) If the source of Consolidated Fund of India/ Consolidated Fund of State/ Consolidated Fund of Union Territory the payment is classified as Honorarium.

(2) Amount of Honorarium sanctioned can be retained in full by the employee and no portion need be credited to Government.