Exempt Income Tax on DA
THE National Mazdoor Conference (NMC) has demanded total income tax exemption on dearness allowance (DA) paid to salaried employees and pensioners as DA is linked directly with price index. What is the logic in taxing inflation - seems to be the point of the NMC. At present Central Government employees and pensioners get 80% of their Basic Pay as DA and if this portion is exempted from Income Tax, it would be a major relief for the employees. Though the demand appears to be fair, it would take years before the concept is understood and accepted.