Business Standard

No tax cuts for Group 'D' staff salary arrears

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Group ‘D’ employees of the central government, including peons and drivers, can heave a sigh of relief as they are likely to get their 40 per cent salary arrears in full without any income tax deduction on implementation of the .

While the Group ‘D’ government employees will not have to pay tax on arrears, those belonging to higher levels can also claim marginal benefit by filing Form 10E of the , said a senior official of the Central Board of Direct Taxes (CBDT).

Among the Group ‘D’ employees, drivers receive highest salary because of overtime allowance, the tax official said, adding that “even they will fall short of the taxing limit by a whisker”.

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, said.

The government while approving the pay commission’s recommendations said 40 per cent of the arrears would be paid in the current year, while the remaining 60 per cent would be disbursed in the next financial year. The arrears are with effect from January 2006.

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