New Allowance to Come Under Income Tax by 7th Pay Commission. This statement is said by a senior finance minister Mr. Arun Jaitley. He said that income tax will be imposed on the new allowance of central government employees from financial year 2017 – 18. For more detail please go through article below.
New Allowance to Come Under Income Tax by 7th Pay Commission
The cenral government employee union demand that all new allowances under 7th CPC should be income tax exempted. They put this demand so many times against finance department. But finance minister finally said as below.
“If all allowances excluding basic salary of central government employees are made tax free which will shows discrimination to others”
He also told that Government have NO plan for Arrears of Allowances.
Employee Union and other union are Un Happy with this hike in Allowances. They demand 10%, 20% and 30% house rent allowance for class Z, class Y and class X city. But 7th Pay Commission panel recommended and finalize 8%, 16% and 24% HRA allowance for central government employee and state government employee.
More Detail: House Rent Allowance in 7th Pay Commission
Central Government Employee Union and other Union demanded for hike in HRA allowance as above and also demanded to exclude allowance from Income Tax. But there is negative response from Finance Minister and Central Government. They finally said that “New Allowance to Come Under Income Tax by 7th Pay Commission”
Article Title: New Allowance to Come Under Income Tax by 7th Pay Commission
Article First Published on 10th August 2017