Your whole 6th Pay Commission arrears money my go in taxes

Your whole 6th Pay Commission arrears money my go in taxes

New Delhi, Sept. 3, 2008: You may be in for a rude shock. Your whole 6th Pay Commission arrears money my go in taxes.

More than 5.5 million central government employees who and their families had chalked out big plans for spending arrears they were set to receive this year are set to be a disappointed lot. The government plans to charge 100 percent tax from the amount it is paying as arrears.

Naseem Khan a senior official in department of post says it is cheating with common people. He says that the step would come as shock for the entire central government employees. He says that the 40 percent arrears were not a very big amount for central government employees but nevertheless it was something and most people had already fixed its usage. Now their whole plan has been dashed.

Rajiv Kumar, another employee with a central school says that it can be termed as betrayal to the whole central government employee fraternity who had hoped highly of sixth pay panel. But this jolt is very rude to say the least.

AH Farooq, another teacher with Kendriya Vidyalya said that he had loaned some amount at the time of admission of his son in an engineering college and had hoped that he would pay the loan from the arrears he will receive, but now comes this disappointing news. He says it will be very hard for him to survive now without going for more loans.

It is being reported that the government is planning to receive 100 percent tax from your 40 percent arrears that is being paid to you this month.

If the government really decides to go this way it would virtually wipe out almost the entire amount of 40% arrears to be paid to central government employees this year. Senior bureaucrats will suffer the most as their tax would be topped with a surcharge of 10%, applicable on an income of Rs 10 lakh and above.

Around 5.5 million central government employees are going to benefit from the pay panel recommendations. A larger number of state government employees too will benefit from the recommendations if their respective state governments implement the recommendations.

It is estimated that the wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.

The financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09. The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.


Source: http://www.khabrein.info/