For lakhs of central government employees looking forward to receiving 40% of the accumulated arrears on their increased salary next month here’s a dampener. The government has decided to levy tax on the entire amount of arrears — 60% of which will be paid next year — in the current fiscal itself.
For most employees, the decision will virtually wipe out almost the entire 40% arrears to be paid to them this year. Senior bureaucrats will suffer most as their tax will be topped with a surcharge of 10%, on income of Rs 10 lakh and above.
A senior finance ministry official said the surcharge to be paid by officers of the rank of joint secretary and above ranges between Rs 24,600 and Rs 52,500. The impact will be less on the lower grades.
Last month, the Centre had announced an average increase of 21% in salaries of its employees. The hikes, effective from January 1, 2006, would burden the exchequer by more than Rs 17,500 crore annually while the arrears alone account for more than Rs 29,000 crore.
gr8....guys hold on we might end up paying back to this govt apart from our arrears...
ReplyDeleteWill it put a full stop to corruption
ReplyDeletein KPSC recruitments
95% Class-I officers are corrupt, everyone knows! Due to inflation, they might proportionately increase their rates - after all they will haver to pay more income tax on their dispropornate salary fixed by the anti-employee government.
ReplyDeleteThe best FM any PM could ask for.HE gives by one hand and takes back by two.U r paid only 40% this year and made to pay tax on entire amt this year.Isn't it fantastic planning.No durden on this govt.If they return next term HE will find yet another way to take away money if they don't then it is their problem.How r v benefitted inall this smartness of HE the FM?
ReplyDeleteGOVT SHOULD INTEREST ON ARREARS AS WELL AS THEY ARE TAXING IT AS THEY ARE RESPONSIBLE FOR 3 YEAR DELAY IN IMPLEMENTATION ....CAN THIS BE TAKEN UP LEGALLY
ReplyDeleteAttention : All accountants and accounts officers in postal department
ReplyDeleteMy case is as Below
on 01.01.2006 I was in payscale 4000-100-6000. My basic at that time was 4700
I got regular promotion on 21.11.06 in scale 5500-175-9000 mY basic was 5500 on that date
Now Sixth pay commision pay fixation options are below
elect revised pay from 01.01.2006 or elect revised pay from date of promotion i.e. 21.11.2006
Can any body clarify what basic should be considered if I am opting for second option for fixation of pay on date promotion
whether 4700 or 5500
Rule no 11 of ccs revised pay rule 2008 says that
in such cases pay in the pay band will be fixed by adding basic pay applicable on the later date
dearness pay applicable on that date and pre revised da applicable as 01.01.2006
There are some different opinions about basic pay applicable on the later date.
whether basic pay 4000-100-6000 scale or basic pay in 5500-175-9000 scale
can any body clear this doubt regarding rule 11 of revised pay rules 2008
6th Pay Commission
ReplyDeleteBy the 6th pay commission a discrimination has been created amongst the
pensioners. 6th pay commission's differential benefits to pensioners from
January 1st 2006 is in contravention of laws laid down by honorable
Supreme Court....
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