Central Government Employees and the Union Budget 2016…
While presenting the Union Budget 2016 in the Parliament House on the 29th of February 2016, the Finance Minister has stated that this Budget deals with the reality of India and focuses mainly on agriculture, rural infra structure, etc.
But it was very disheartening to see the Minister was not at all bothered about the Central Government Employees, the working middle class and their difficulties in day today life. The government employees eagerly expected changes in the Income Tax Slabs by increasing the Income Tax limit. But that did not happen. The minister has announced that people with an income less than 5 lakhs, to get a deduction of Rs. 5000/- up from Rs.2000/- last year. This totals to Rs.5000/-. HRA deduction to be increased from 24000/- to Rs.60,000/-. These are the important benefits announced by the minister for the middle class.
There was no specified description or allotment of money towards implementation of 7th Pay Commission.
The Finance Minister was of the opinion that the tax payers net should be widened but it was seen that successive governments have kept their first option to squeeze money from the honestly taxpaying government employees by imposing different types of taxes. The salaried middle class has consistently borne the brunt of direct taxation in India.
In addition to that, Employees Provident Fund subscribers are to pay tax when withdrawing Rs.60000/- from their account. The rage over the new tax on withdrawal from EPF is because the government is seen to be attempting to steal the hard-earned savings of salaried private sector employees. The proposal to tax the EPF amount should be rolled back by the finance minister.
In India, Budget proposals are only implemented after long debates and discussions. The government should hear from all sources before implementing it.
Let us see what happens…