6CPC New Pay and Arrears – Estimation of Income tax payable for the year 2008-09
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The lack of clarity over taxation of arrears that government employees will receive following the implementation of the 6th Pay Commission recommendations has finally cleared. The tax on first installment will be deducted in the current fiscal and that on the second installment will be deducted next year when they receive the actual payment.
Confusion had arisen about the tax treatment of the pay arrears that central government employees are about to get as part of their latest wage revision. According to finance ministry sources, only the first installment of the arrears would be taxed this fiscal. The taxation, they would be akin to the tax treatment in 1997 when the fifth pay commission recommendation was implemented wherein the tax was deducted at the time of payment.
Source : Economic Times
In line with this news, we have come up with an estimation of Income tax that is payable for the salary income received by the CG employee during the year 2008-09 (Assessment year – 2009-10).
Pay and Arrears Calculator – For All Pay Bands with Income Tax Estimation
Income Tax Estimation for Pay and Arrears (2008-09)- Fixation of Pay on the date of increment
6 Responses to “6CPC New Pay and Arrears – Estimation of Income tax payable for the year 2008-09”
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p g sidharthan said on Sunday, October 19, 2008, 12:34
kindly clarify whether the HRA will also considered for income tax
Reply
T.K.Dhali said on Sunday, November 2, 2008, 22:50
kindly clarify whether the medical reimbursement claimed against the expanses for treatment of a dependent member in a government approved hospital will also considered for income tax?
Reply
Mehul said on Sunday, November 8, 2009, 22:33
Where i Calculate the 6th Pay Commission ?
Reply
Nitin said on Wednesday, December 16, 2009, 22:21
I have received 40% and 60% pay arrears consequent upon the implementation of 6th Central Pay Commission. However, I have not claimed any relief u/s 89(1) of Income Tax Act after the receipt of 40% pay arrears during 2008-09 on the tax paid for the year 2008-09. Can I claim the relief u/s 89(1) now i.e. after the receipt of 60% pay arrears for the year 2009-10 on the entire arrears amount. Please clarify.
Reply
admin Reply:
December 17th, 2009 at 8:47 am
@Nitin
relief for this year could be claimed only for the receipt in arrears this year
Reply
KD Singh said on Tuesday, December 22, 2009, 16:06
I have received 40% and 60% pay arrears consequent upon the implementation of 6th Central Pay Commission. However, I have not claimed any relief u/s 89(1) of Income Tax Act after the receipt of 40% pay arrears during 2008-09 on the tax paid for the year 2008-09. I had to pay surcharge of 10% as the total income exceeded Rs 10Lakhs due to 40% arrears received in 2008-09.
How can I claim back the extra amount of tax paid ? the CA is asking the form 10E for the year 2008-09 which should clearly indicate the net income and the arrears (40%). how to get / create the 10E for 2008-09.
Pl reply
KD Singh
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