NEED PARITY IN INCOME TAX REBATE: PUNJAB TO CENTRE

MOGA: The Punjab finance department has sought rebate on income tax for its employees under the new pension scheme from the central government and has written to the Centre for parity in income tax rebate.

The Centre has imposed income tax on employer’s 14% contribution to pension during the budget announcement, but has also given rebate to its own employees to the extent of 14% contribution. Under the new pension scheme, the employee contributes 10% of their salary and the Centre contributes 14% of employees’ salary from its own pocket. The state government has implemented the same pattern for its employees, but for the state’s employees the tax rebate is applicable only up to 10% contribution of employer.

Abhinav Trikha, special secretary, expenditure-cum-director of treasuries and account, said, “Since the state government follows the Central pattern the in implementation of new pension scheme. There should be parity in income tax rebate also for Centre and the state governments’ employees. Uniformity in rules of new pension scheme must be maintained in centre and in states.” Vikrem Dev, president, Democratic Teachers’ Front (DTF), said, “The Centre has implemented tax on getting pension under this scheme after retirement. Now, Centre has also implemented tax on employer’s share of contribution. Why should employees pay tax twice on pension. We will get the pension benefit after retirement. Why are we being asked to pay tax on benefit that we are yet to receive.” HTC

FOR THE STATE’S EMPLOYEES,, THE TAX REBATE IS APPLICABLE ONLY UP TO 10% CONTRIBUTION OF THE EMPLOYER