Sunday, September 7, 2008

Group D employees’ earning from 6th Pay Commission to be tax exempt

Khabrein.Info News Desk,

New Delhi, Sept 7, 2008: There is good news for group D employees. Their earning from sixth pay commission arrears may be tax exempt.

This may be the biggest news for the central government’s group D employees as it will give them substantial savings that they could not have managed from anything else.

There were already fears that the government may tax their earnings from sixth pay commission arrears 100 percent from the 40 percent arrears they were being paid this year.

This could have left many central government employees without much cash from the arrears they were being paid.

Though the government later denied but the fear is still looming as no clear instructions have been issued in this regard.

The government has given hefty rise to central government employees, around 25 percent and the lowest government employee will be taking away at least more than Rs 10000 as monthly salary.

The good news here is limited to only group D employees. High ranking officials would not get as much benefit as their Group 'D' counterparts get as they already are in a larger tax bracket and may also be required to pay a "surcharge" on their salaries.

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