Exempt DA from income tax: NMC

Tribune News Service

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Jammu, December 28

The National Mazdoor Conference (NMC) is seeking exemption of dearness allowance (DA) from the ambit of the income tax as it is directly linked with the price index.

“The price escalation is directly linked with the DA of the salaried class and pensioners,” said Subash Shastri, NMC president, while addressing a workers’ rally at Kanjali village recently.

There is no justification to imposing income tax on DA, he added. The NMC president asked Union Finance Minister Arun Jaitley to reconsider the practice and urged him to make an announcement in this regard in the ensuing Budget session of Parliament.

He also said that income tax exemption limit should be raised to Rs 5 lakh from the existing Rs 2.5 lakh. Shastri demanded an administrative order so that the implementation of the same takes place from January 1, 2016, as per the commitment made by the NDA government to the salaried class.

He said as the 7th pay commission recommendations were now out, there should be no delay in implementing them when the next Union Cabinet meeting is held. He said it would be a New Year gift for both Centre and state government employees and pensioners. He hoped that Jammu and Kashmir becomes the first state in the country to implement the 7th pay commission.

Rajan Babu Khajuria, BS Jamwal, Sunil Kochar, Surinder Kumar, Bhupinder Singh, Mohan Lal, Sukhdev Singh and Karan Singh also spoke on the occasion.