7th Pay Commission: Several demands of central government employees are yet to be fulfilled. It was rumoured that the Narendra Modi government will make some announcements related to pay hike demand of the employees either on January 26 or in the Budget 2019. However, their wait has got just longer as there was no 7th Pay Commission-related announcement in the budget. Yet, the annual financial statement puts more money in the hands of central government employees, as well as others, by the way of income tax rebates and some other provisions.
7th Pay Commission: The central government employees have been getting their pay as per the fitment factor of 2.57 times which has set the minimum basic pay at Rs 18,000. However, the central staffers have been demanding a pay hike by the fitment factor of 3.68 times which will increase the basic pay to Rs 26,000. However, nothing has happened so far.
7th Pay Commission: The finance minister announced a tax rebate for taxable income up to Rs 5 lakh. This limit can go up after taking into the considerations additional deductions such as interest on a home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc.
7th Pay Commission: The finance minister said that TDS threshold on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000. TDS threshold for deduction of tax on rent is proposed to be increased from Rs 1,80,000 to Rs 2,40,000 for providing relief to small taxpayers.
7th Pay Commission: The FM also proposed exemption on levy of income tax on notional rent on a second self-occupied house. Currently, income tax on notional rent is payable if one has more than one self-occupied house. All these announcements will certainly put more money in the hands of slaried employees.