Wednesday, September 03, 2008

Get ready for Tax now

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.

(Times of India Delhi dated 03/09/08)

8 comments:

  1. Anonymous4:25 PM

    gr8....guys hold on we might end up paying back to this govt apart from our arrears...

    ReplyDelete
  2. Anonymous9:42 AM

    Will it put a full stop to corruption
    in KPSC recruitments

    ReplyDelete
  3. Anonymous3:24 PM

    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.

    ReplyDelete
  4. The 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?

    ReplyDelete
  5. Anonymous4:27 PM

    GOVT 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

    ReplyDelete
  6. Attention : All accountants and accounts officers in postal department


    My 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

    ReplyDelete
  7. 6th Pay Commission

    By 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....

    READ MORE >> www.right2info.com

    ReplyDelete
  8. 6th Pay Commission

    By 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....

    READ MORE >> www.right2info.com

    ReplyDelete