7th Pay Commission Latest News Today: The Central government has brought a piece of good news for all central government employees this year. As per the recent announcement made in the Budget 2021 presentations, the central government employees will not have to pay income tax on the amount received against the leave travel concession (LTC). Moreover, the central government employees are going to get their Dearness Allowance hike this year from June. Once their DA is hiked, there will be huge jump in their take-home monthly salary. This will be done as per the recommendations of the 7th Pay Commission.Also Read - Capital Expenditure, Reduction in GST: 10 Things India’s Middle Class Expects From Budget 2022
Income Tax and LTC Tax relief: Giving a big relief for lakhs of government employees, the Centre this week said that the government employees won’t have to pay income tax on the amount received against the leave travel concession (LTC). The announcement was made by Finance Minister Nirmala Sitharaman while she was presenting the Budget 2021 in the Parliament on Monday. The Central government employees must recall that the income tax exemption was given by Centre to the government employees on October 12 last year due to COVID-19 pandemic. Also Read - Stable Policy, Credit Guarantee: What Renewable Energy Sector Expects From Budget 2022
However, keeping in mind the coronavirus pandemic situation, the Centre has extended this income tax relief for all salaried taxpayers for the four year cycle of 2018-21. Also Read - Budget 2022: From Briefcase To Bahi-Khata, Here Are Interesting Facts That You Should Know
Employee who will opt for the LTC Cash Voucher Scheme will be required to buy goods or services worth 3 times the fare and 1 time the leave encashment before 31st March 2021. The items bought should be those attracting GST of 12 per cent or more.
Salary hike and DA increase: The Union Labour Office has announced that AICPI (All India Consumer Price Index) data which hints that Prime Minister Narendra Modi-led government at the Centre would announce at least 4 per cent hike in the DA very soon. Once the Centre announces DA hike and adds it to the central government employees’ salary, there will be a huge jump in their monthly income.
The Centre had last year decided to freeze DA for the central government employees till June 2021. This summarises that even after the government’s DA hike announcement, the salary hike will take place only after June 2021. At present, the Central government employees’ DA is 17 per cent of their basic salary. Once the DA gets restored then their DA will go up from 17 per cent to at least 25 per cent (17 + 4 + 4).