ALL INDIA ASSOCIATION OF CENTRAL EXCISE
GAZETTED EXECUTIVE
OFFICERS
Patron
Chief Patron
Patron
A.
Venkatesh Ravi
Malik
C. S. Sharma
Mob. 7780255361 Mob. 9868816290 Mob.
9313885411
President:
Address for communication: Secretary
General:
M. Loganathan Flat No. 6, SE
11, Shastri Nagar, Ghaziabad Harpal Singh
Mob.8758262698 mail
Id:aiacegeo2019@gmail.com Site:cengoindia.blogspot.in Mob.9717510598
Vice Presidents: B C Khatik, V Pagare (Central) Diwakar Sahai, Sanjoy Gupta (East)
Ashish Vajpayee, Amadul Islam (North) G Srinivas Reddy, P Ravichandran (South)
R Keny, J B Parmar (West) Joint Secretaries: S P Pandey, T J Manojumon
(Central) Subrata Adhikari, SiddharthTewari (East) Ramkesh Meena, S Sahai
(West) Atul Kumar, R B Sahu (North) Bhoopesh, R V Raghunandan (South); All India Convener: A K Meena All
India Coordinator: B L Meena Office Secretary: B C Gupta Treasuer:
M Kumar Organising Secretary: M Bajpai Liaison Secretary: N S Maheshwari North Zone Coordinator: Prabhakar Sharma Legal Coordinator: S
Sabarwal Vigilance Coordinator: R
K Singh South Zone Coordinator: U Sharma
(Recognised by G.O.I., Min. of Fin. vide letter F.No.
B. 12017/10/2006-Ad.IV A Dt.21.01.08)
Office address: 206, B wing, CGO Complex II, Kamla
Nehru Nagar, Ghaziabad.
Ref. No. 13/AIB/I/23 Dt. 23.01.23
To,
Ms. Nirmala Sitharaman,
Hon’ble Finance Minister of India,
North Block, New Delhi.
Sub: Income Tax on salaries.
Madam,
It is submitted with due regards
that the Budget for the year 2023-24 is to be presented by your goodself soon.
The Association takes this opportunity to make the following submissions for
your kind consideration regarding Income Tax from salaried employees.
2. The pay/salary of the
Central Government employees undergoes revision only once in ten years whenever
pay commission is constituted by the Govt. The pay structure gets seriously
dis-aligned during this period as 50% increase in prices takes place even in
less than five years. This results in considerable erosion of the financial
position of the salaried employees. Even the Dearness Allowance does not
adequately take care of the high inflation. Moreover, the Govt. has declared
that no pay commission would be constituted in future. So, nobody knows if any
revision on a particular interval/time in pay/salary for the Govt. employees
would be made or not in future. This has also increased the worries of the salaried
employees multifold. Even otherwise, the Govt. made only a ‘less than mediocre’
increase in the salaries after taking consideration of the latest pay
commission report w.e.f. 01.01.16.
3. The Govt. employees get pay/salary (not income) for all their services being rendered to the Govt. to
bear the life expenses of them and their families. The Govt. pays them salary
which is of course treated by the Govt. as income and is liable to Income Tax. However,
the actual income should be calculated after deducting the total expenses from
the salary as is being done in the case of professionals and businessmen etc.
Whatever money these professionals and businessmen etc. earn by their
profession or business etc. is not treated their income. Their income is
calculated by deducting all of their expenses from their earnings. Only after
it, the Income Tax is levied on them. Not only it, they also get the benefit to
set off their losses. No such benefit is available to the salaried employees.
Even more, the Govt. salaried employee can also not play any trick to avoid or
make theft of Income Tax. They are forced to get the tax deducted at source
automatically.
4. The Govt. employees are paid pay as a fund for livelihood of their own
self and family on account of serving the Govt. So, pay/salary can noway be
termed as income. Therefore, a question
arises as to whether Income Tax should be levied on the pay/salary. The answer
to it is a “big no” because the pay/salary is noway any income for any services
or work or even otherwise. This is only a fund given by the Govt. to the employees
for serving the Govt. So, the salaried employees should also be allowed to
deduct their expenses from the salary for the purpose of Income Tax and also
set off losses.
5. If the salaries
and perks/allowances etc. of the Hon’ble Members of Parliament and the Hon’ble
Members of Legislative Assemblies are not taxable, the total salary of the
Govt. employees should also not be taxed or at least their expenses should e
deducted from it for the purpose of Income Tax in our Indian democratic system,
the biggest and the greatest one in the world. All citizens are equal in our
great democracy without any discrimination or partiality. Govt. employees should be given far
better treatment and due weightage because of serving the Govt. day and night. This
is, in fact, gross injustice to our poor employees to levy tax on their salary
without deduction of expenses and not giving benefit of set off. Likewise, the salaries
and perks/allowances etc. of the Hon’ble Members of Parliament and the Hon’ble
Members of Legislative Assemblies should also be taxable.
6. It is also worth to submit that
the tax collection by the Govt., direct as well as indirect, is also on regular
increase and already reached the tune of 25% more for the outgoing three
quarters of the current financial year. This will increase even more in
handsome quantum for the ongoing last quarter as being regular feature of every
financial year. So, on account of increase of handsome tax collection, it is
quite easy for the Govt. to take such measures for Govt. employees. The
forecast of our Indian economy to be unaffected by the forecasted worldwide
inflation makes the things even easier for our Govt.
7. In view of the above,
it is requested that-
(i) The income for the
purpose of Income Tax may kindly be calculated after deduction of expenses from
the salary and also set off losses to cope up high inflation and regularly
increasing life expenses.
(ii) Not only it, the
interest to the tune of at least Rs. five lac per year earned by the Govt. employees
on deposits and savings may also kindly be exempted to cope up high rate of
ever increasing inflation.
(iii) And also the salaries
and perks/allowances etc. of the Hon’ble Members of Parliament and the Hon’ble
Members of Legislative Assemblies should be taxable or the salary/pay and
allowances etc. of the Govt. employees should also be made totally tax free.
Thanking
you,
Yours sincerely,
(HARPAL
SINGH),
Secretary
General.
Copy with
the request for necessary action:
The Hon’ble Prime Minister of India, South Block, New Delhi.
