Explanation:

He can only be removed only on an address from the both house of Parliament on the ground of 1) proven misbehaviour 2) incapacity.
His salary and conditions of service are statutory (as laid down by the parliament by the law, through this power parliament enacted CAG act 1971).
The expenses of his salary and other administrative expenses are charged on the Consolidated Fund of India.
Provisions securing the independence of the Office of CAG
The very nature of the job of CAG means that he may come in conflict with the establishment. His findings may not be to the lilting of the Government as it may expose executive excesses in incurring expenditure without the sanction of the legislature. Thus, it is imperative that his office is secured from executive interference.
To secure the independence of his office, the following safeguards have been put in place:
• The CAG is an exception to the rule that all civil servants hold office during the pleasure of the President. Once appointed, a CAG can be removed only by following the procedure laid down for removing a judge of the Supreme Court of one of a High Court;
• The Constitution also states that he can be removed only on ground of proved misbehaviour or incapacity;
• His salary and conditions of service shall be laid down by an Act of Parliament and may not be varied to his disadvantage during the tenure of his office; except in case of a Financial Emergency;
• The salaries etc. of the CAG and his staff and the administrative expenses of his office shall be charged upon the Consolidated Fund of India and shall not be voted upon by the Parliampnt.
• The CAG shall be ineligible for any Government office after retirement; (According to judicial decisions, an 'office' is an employment which embraces the ideas of tenure, duration, emolument and duties.
• Other service conditions shall be the same as that for an IAS officer of the rank of Secretary to the Government of India. The CAG may resign by writing to the President.